2024 Clean School Bus Rebate Program Guide &EPA United States Environmental PrulutUon Agency ------- 2024 Clean School Bus Rebate Program Guide Transportation and Climate Division Office of Transportation and Air Quality U.S. Environmental Protection Agency |^A United States Environmental Prolucliun I M I Ag en cy EPA-420-B-24-044 September 2024 ------- Table of Contents Summary of 2024 Clean School Bus Program (CSB) Rebates 4 Section 1: Overview 6 Section 2: Eligible and Prioritized Applicants 8 Eligible Applicants: 8 Prioritized Applicants 10 Section 3: Eligible School Buses, Infrastructure, and Other Expenses 11 Eligible School Buses 11 Job Quality in the Clean School Bus Market 14 Eligible Infrastructure 15 Charger Safety Certification Requirements 15 Vehicle-to-grid or V2X 16 Utility Planning 16 Required Electrician Certification 16 Build America, Buy America Requirements 17 Other Eligible Expenses 17 Infrastructure Labor Costs 17 Workforce Training Costs 17 Consulting Costs 18 Delivery Costs 18 Warranty and Service Level Agreement Costs 19 Section 4: Funding Amounts and Number of Applications 19 Inflation Reduction Act Tax Credits 21 Bulk Orders 22 Section 5: Application Process 22 Supplemental Forms 24 Section 6: Application Selection Process 25 Section 7: Notification 28 Section 8: Payment Request Form, Order Documentation, and Payment 29 Section 9: Change Request Form 30 Section 10: Scrappage, Sale, or Donation of Existing Buses 31 Scrappage Requirements 24 Sale and Donation Requirements 24 Section 11: Close Out Form 32 Page 2 of 46 ------- Appendix A: Terms and Conditions 34 Appendix B: Infrastructure Eligibility Resource 40 Appendix C: Sample Scrappage Photos 42 Appendix D: Sample Scrappage Certification Letter 44 Appendix E: Sample Fuel Fired Heater (FFH) Maintenance Schedule 45 Page 3 of 46 ------- Summary of 2024 Clean School Bus Program (CSB) Rebates What is a CSB Rebate? A CSB Rebate is a payment from the EPA to an eligible entity to subsidize the purchase of a zero- emission (ZE) or clean school bus, eligible infrastructure, and other costs, including workforce training, that meet the requirements described in this Program Guide. Rebates allow selectees to receive awarded funds prior to paying their vendor(s) for the bus(es) and associated infrastructure listed in their application; however, applicants selected for funding should be prepared to meet financial reporting requirements. EPA's Office of the Chief Financial Officer will contact selected applicants to inform them how to meet financial reporting requirements and the frequency in which they will need to report. How much total funding is available and when are applications due? The EPA plans to award up to $965 million through this rebate competition, with the potential to modify this figure based on the application pool and other factors. Applications are due via the online application form before 4 PM ET on January 9, 2025. Who is eligible? 1. Public School Districts (local or state governmental entities, and public charter schools, as well as regional Education Service Agency (RESA) or Joint Transportation Agency (JTA), with a National Center for Education Statistics (NCES) ID specific to either the RESA or JTA) 2. Tribal Applicants (an Indian Tribe, Tribal organization, or Tribally-controlled school) 3. Third Parties (nonprofit school transportation associations and eligible contractors) Which school districts receive priority consideration as authorized in the Bipartisan Infrastructure Law? 1. High-need school districts and low-income areas, limited to: a. School districts listed in the Small Area Income and Poverty Estimates (SAIPE) School District Estimates for 2022 as having 20% or more students living in poverty. b. Title l-funded school districts and charter school districts not listed in the SAIPE dataset. c. Title l-funded large public-school districts with more than 35,000 students and/or 45 public schools that do not meet the 20% poverty threshold that self-certify their low- income status. d. School districts located in the U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. 2. Rural school districts identified with NCES locale code "43-Rural: Remote." 3. Bureau of Indian Education-funded school districts. 4. School districts that receive basic support payments for children who reside on Indian land. What types of buses are eligible and how many can each applicant request? Applicants can request battery-electric, propane, and compressed natural gas (CNG) buses. Though battery-electric school buses may sometimes be referred to as zero-emission school buses, all three types of buses are considered clean school buses. Applicants requesting battery-electric buses are also Page 4 of 46 ------- able to purchase eligible electric vehicle (EV) charging equipment and infrastructure. Each applicant can request up to 50 buses through this rebate competition, regardless of prioritization, bus fuel type, or applicant entity. How do I apply? After reading this entire document, including the Terms and Conditions in Appendix A, please submit your application through the Applicant Dashboard prior to the submission deadline. If you have questions about applying, or other program-related questions that are not answered in the Q&A document, then please submit them to cleaiischoolbusgepa.gov with "2024 CSB Rebate Question" in the subject line. Page 5 of 46 ------- Section 1: Overview School buses collectively travel over three billion miles each year, providing transportation to and from school for more than 25 million American children every day.1 Nearly all the school buses currently on the road run on diesel fuel, with many lacking the most advanced emission control technologies because they pre-date recent EPA emission standards. Exhaust from these buses has a negative impact on human health, especially for children, who have faster breathing rates than adults and whose lungs are not yet fully developed. The EPA's Clean School Bus (CSB) Program subsidizes the replacement of existing school buses with cleaner buses that result in better air quality inside the bus cabin, in bus loading areas, and throughout the communities in which they operate. This document details the eligibility criteria and requirements for the EPA's 2024 CSB Rebate Program. As background, the Infrastructure Investment and Jobs Act (also known as the Bipartisan Infrastructure Law), codified at 42 U.S.C. 16091 (as amended by Consolidated Appropriations Act, 2023, H.R. Res. 2617, 117th Cong. § 405 (2022) (enacted)) provides $5 billion to the EPA CSB Program for the replacement of existing school buses with clean and zero-emission (ZE) school buses. For each fiscal year between 2022 and 2026, $500 million is available to fund ZE and clean school buses, and $500 million is available to fund only ZE school buses. Since the program began, the EPA has provided funding from the Clean School Bus Program through both grants and rebates. Given the high level of interest in previous rebate funding opportunities, the EPA is offering another round of rebate funding in 2024 and anticipates offering another funding opportunity going forward. Under both CSB rebates and grants, once an applicant receives official notification of selection of funding, then they can initiate the process of purchasing eligible equipment. Similarly, both CSB grants and rebates provide funds to recipients prior to when they need to pay their vendor(s) for eligible buses and infrastructure; however, there are a few key differences between grants and rebates, as outlined in Table 1 below. The EPA encourages potential applicants to consider which competition and award structure (grants or rebates) best suits their needs. Eligible applicants can apply for all future funding opportunities under the CSB Program, regardless of whether they applied for and/or received funding under a past funding opportunity; however, they need to submit a new application for each funding opportunity. A CSB Rebate is a payment from the EPA to an eligible entity to subsidize the purchase of a ZE or clean school bus, eligible infrastructure, and other costs, including workforce training, that meet the requirements described in this Program Guide. Rebates allow selectees to receive awarded funds after purchase orders have been submitted, but prior to when they need to pay their vendor(s) for eligible buses and infrastructure listed in their application; selectees should disburse rebate funds to their vendors as expeditiously as possible (see Appendix A for details). Importantly, buses and associated infrastructure must be purchased after notification of selection for a rebate award. Fleets are also required to replace existing buses by the end of the project period, although there can be overlap between receiving replacement buses and replacing existing buses. 1 School Bus Fleet. (2020). 2020 Fact Book. 65(11), p. 38. http://digital.schoolbusfleet.com/publication/?m=65919&i=696463&p=40&ver=html5. Page 6 of 46 ------- Table 1: Differences Between Rebates and Grants Rebates Grants Application Process Quick and simple application process Longer, more detailed application process Selection Process Selectees determined by a random number generated lottery process Recipients are selected based on evaluation of application materials Financial timing, documentation, and associated regulations Selectees receive funds upon EPA review and approval of purchase order documents. Selectees work with vendors to disburse funds as expeditiously as possible (refer to Appendix A of this Program Guide for details) Grant recipients must follow all applicable requirements in 2 CFR 200.302. 2 CFR Part 1500 Subpart D, and 40 CFR Part 33; as required bv 2 CFR 200.305(b), the recipient must draw funds from Automated Standard Application Payments (ASAP) only for the minimum amounts needed for actual and immediate cash requirements to pay employees, contractors, subrecipients or to satisfy other obligations for allowable costs under this assistance agreement. The timing and amounts of the drawdowns must be as close as administratively feasible to actual disbursements of EPA funds. Disbursement within 5 business days of drawdown will comply with this requirement and the recipient agrees to meet this standard when performing this award (refer to the EPA General Terms and Conditions for more information) Please continue reading for detailed instructions on who can apply for this 2024 rebate opportunity, what buses are eligible for replacement, how much funding is available per bus, how the selection process works, and how to apply and participate in this funding opportunity. All participants must also review the Terms and Conditions in Appendix A. Additional information is available in the Q&A document; any questions not answered in the Q&A document should be submitted to cleanschoolbusffiepa.gov with "2024 CSB Rebate Question" in the subject line. The 2024 CSB Rebate Timeline is outlined below in Table 2. Page 7 of 46 ------- Table 2: 2024 CSB Rebate Timeline Date Activity September 26, 2024 2024 CSB Rebates Goem. Aoolications must be submitted via CSB Rebate Online Aoolication Form. October 2024 - December 2024 The EPA hosts various Webinars on CSB Program. 4 PM ET on Thursday, November 14, 2024 Final Date to Submit Questions to cleanschoolbusOeDa.eov for inclusion in the Q&A Document prior to the application deadline. 4 PM ET on Thursday, January 9, 2025 2024 CSB Rebates Aoolication Deadline. January 2025 -May 2025 Selection process; applicants should be prepared to promptly answer eligibility questions or provide other clarifying information upon EPA request. May 2025 The EPA anticipates notifying applicants of selection status. Selectees can proceed with ordering/purchasing replacement buses and eligible charging infrastructure upon receipt of official selection notification. June - November 20252 Selectees submit Payment Request Forms with purchase orders demonstrating that eligible replacement buses and eligible charging infrastructure have been ordered. May 2027 Project period deadline for selectees to receive eligible replacement buses, install eligible charging infrastructure, scrap, sell, or donate existing buses, and submit Close Out Forms. Section 2: Eligible and Prioritized Applicants Eligible Applicants: 1. Public School Districts a. Local or State governmental entities3 responsible for: i. Providing school bus service to one or more public school systems; or ii. The purchase, lease, license, or contract for service of school buses. b. A public charter school district responsible for the purchase, lease, license, or contract for service of school buses for that charter school. c. Regional Education Service Agency (RESA) or Joint Transportation Agency (JTA), with an NCES ID specific to either the RESA or JTA. 2. Tribal Applicants a. An Indian Tribe (as defined by section 4 of the Indian Self-Determination and Education Assistance Act, 25 U.S.C. 5304), Tribal organization (as defined by the same section), or Tribally-controlled school (as defined by section 5212 of the Tribally Controlled Schools Act of 1988, 25 U.S.C. 2511) that is responsible for: 2 In instances when a selectee has a clear justification (e.g., vendor delays due to supply chain constraints), the EPA may on a case-by-case basis grant an extension to the Payment Request Form and Close Out Form submission deadlines. Please refer to Section 8 for more details. 3 Includes public school districts. In this program, "school district" refers to local education agencies (LEAs). A directory of school districts and their corresponding NCES District ID can be found here: https://nces.ed.gov/ccd/districtsearch/. Page 8 of 46 ------- i. Providing school bus service to one or more Bureau-funded schools (as defined by section 1141 of the Education Amendments of 1978, 25 U.S.C. 2021); or ii. The purchase, lease, license, or contract for service of school buses. 3. Third Parties a. A nonprofit school transportation association4; or b. An eligible contractor5,6. This group generally includes school bus dealers, Original Equipment Manufacturers (OEMs)7, school bus service providers, and Electrification as a Service (EaaS) Providers. School districts are eligible to apply directly, even if they contract out bus service to a private fleet; if selected, the school district could pass funds to the private fleet(s) to replace the buses. If a third-party applies on behalf of a school district and is selected for funding, then that third-party is the applicant and, if selected, will receive the funding on behalf of the school district. The school district that is listed on the third-party application cannot change which third-party receives funding on behalf of that school district (i.e., the EPA will not send funding to an entity that is not the selected applicant). When submitting an application, all applicants will be required to submit one or more of the following supplemental forms: School District Approval Certification, School Board Awareness Certification, and/or Utility Partner Template (for those applying for ZE buses); see Section 5 more details. All forms must be signed by an authorized representative (i.e., an individual who has the consent of the applicable organization to sign on its behalf) prior to submitting the application. Applications submitted without all completed forms, including signatures, will not be included in the lottery selection process. Applicants on a previous rebate waitlist must reapply for this program; applications from previous round of rebates will not carry over to the 2024 program due to changes in program requirements, updates to the rebate application webform, and the need to confirm continued interest from past applicants. By applying for funding under the 2024 CSB Rebate Program, applicants attest that they (A) are not owned by, controlled by, or subject to the direction of a government of China, Iran, North Korea, or 4 For the purposes of applicant eligibility under the 2024 CSB Rebate Program, the EPA defines "nonprofit school transportation association" as nonprofit organizations (as defined at 2 CFR 200.1 "Nonprofit organization") dedicated primarily to school bus transportation. A nonprofit organization dedicated primarily to other work, including work associated with public education, would not be eligible to apply as a "nonprofit school transportation association." 5 Eligible contractor, as defined by the Infrastructure Investment and Jobs Act, Public Law 117-58 (42 U.S.C. 16091), means any for-profit, not-for-profit, or nonprofit entity that has the capacity (1) to sell, lease, license, or contract for service clean school buses, ZE school buses, charging or fueling infrastructure, or other equipment needed to charge, fuel, or maintain clean school buses or zero-emission school buses, to individuals or entities that own, lease, license, or contract for service a school bus or a fleet of school buses; or (2) to arrange financing for such a sale, lease, license, or contract for service. 6 Any eligible contractor that is selected for funding under this program may not purchase buses or associated infrastructure from a parent company, subsidiary or other affiliate as that term is defined in 2 CFR 180.905 as this establishes an actual or apparent organizational conflict of interest. The eligible contractor must purchase the buses and associated infrastructure from another third-party (either from the OEM directly or from another dealer) through an arms-length transaction. 7 Any OEM that applies for a CSB rebate must certify that it is eligible to sell buses in the state in which the school districts listed on the application reside. Page 9 of 46 ------- Russia (collectively, "foreign countries of concern"), (B) are not headquartered in a foreign country of concern, and (C) are not a subsidiary of an entity covered under either of the preceding clauses.8 Prioritized Applicants The Bipartisan Infrastructure Law authorizes the EPA to prioritize awarding funds to certain communities that will benefit from the CSB Program.9 Applicants requesting funds for replacement school buses that will serve a school district that meets one or more of the prioritization criteria below will receive preference in the selection process, as outlined in Section 6. Additionally, these districts, if selected, will receive a higher rebate value per bus. The EPA offers equal prioritization for school districts that meet one or multiple prioritization criteria. Please note that prioritization criteria may differ from previous funding opportunities, so please verify your prioritization status under this funding opportunity. For the purposes of this funding opportunity, prioritized school districts must meet one or more of the following prioritization criteria: 1. High-need school districts and low-income areas, limited to: a. School districts listed in the Small Area Income and Poverty Estimates (SAIPE) School District Estimates for 2022 as having 20% or more students living in poverty. b. Title l-funded school districts and charter school districts not listed in the SAIPE dataset. See the Prioritization Self-Certification Instructions, which can be found on the CSB Rebates webpage, for more information on this option.10 c. Title l-funded large public-school districts, defined as districts with more than 35,000 students and/or 45 public schools, that are in SAIPE but do not meet the 20% poverty threshold, may be eligible to self-certify the low-income prioritization status for part or all of their district. Seethe Prioritization Self-Certification Instructions, which can be found on the CSB Rebates webpage. for more information on this option. d. School districts located in the U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.11 2. Rural school districts identified with locale code "43-Rural: Remote" by the National Center for Education Statistics (NCESi. 3. Bureau of Indian Education-funded school districts. 8 The EPA's policy priorities include ensuring that the Agency does not award direct funding under the Clean School Bus Program to companies with certain connections to foreign countries of concern. For purposes of implementing this policy priority, EPA considers foreign countries of concern to be the covered nations listed in 10 U.S.C. § 4872(d): the Democratic People's Republic of North Korea; the People's Republic of China; the Russian Federation; and the Islamic Republic of Iran. This EPA policy priority is consistent with the clear sense of Congress that taxpayer dollars should not be used to provide such funding, particularly with respect to companies whose business encompasses battery processing and manufacturing. 9 42 U.S.C. § 16091(b)(4) (2023) (as amended by Consolidated Appropriations Act, 2023, H.R. Res. 2617,117th Cong. § 405 (2022) (enacted)). 10 Title I, Part A (Title I) of the Elementary and Secondary Education Act, as amended by Every Student Succeeds Act (ESEA) provides financial assistance to local educational agencies (LEAs) and schools with high numbers or high percentages of children from low-income families to help ensure that all children meet challenging academic standards. 11 Puerto Rico Dept of Education is prioritized as high-need through poverty data from SAIPE. Page 10 of 46 ------- 4. School districts that receive basic support payments under section 7703(b)(1) of title 20 for children who reside on Indian land. School districts that qualify under one or more prioritization criteria above, except for l.b. and I.e., are identified in the EPA's Prioritized School District List, available on the CSB Rebates webpage. Applicants that are self-certifying as prioritized under l.b. or I.e. will be able to attest to their self-certification in the online rebate application form. Applicants who are self-certifying as prioritized under l.b. or I.e. will need to provide required documents to support their self-certification at the time of their application submission. For additional details, please refer to the "Self-Certifiable Districts" tab in the Detailed Prioritized School District List available on the CSB Rebates webpage. The CSB Program is covered by the Justice40 Initiative, which sets a goal that 40 percent of the overall benefits of certain Federal investments flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.12 EPA remains committed to prioritizing the advancement of environmental justice by taking action to protect overburdened communities. The statutory criteria used to prioritize school districts facilitates the CSB Program meeting the Justice40 goal; the statutory criteria are also linked with criteria used to identify communities in the Climate and Economic Justice Screening Tool (CEJST). Section 3: Eligible School Buses, Infrastructure, and Other Expenses This section outlines the school buses, associated charging infrastructure, and other expenses, such as workforce training, that are eligible under the 2024 Clean School Bus Rebate Program if an applicant is selected for funding. All eligible expenses must be clearly identified with line-item expenses in the order documents submitted to the EPA as outlined in Section 8; the EPA will only pay for eligible expenses incurred after official selection notification. The EPA will only fund up to the amount requested in the rebate application and will not increase the funding amount of an award after official selection. Eligible School Buses For the 2024 CSB Rebates, "school bus" is defined as a passenger motor vehicle designed to carry a driver and more than 10 passengers, that the Secretary of Transportation decides is likely to be used significantly to transport preprimary, primary, and secondary school students to or from school or an event related to school.13 Existing school buses to be replaced must: 1. Be vehicle model year 2010 or older diesel-powered school buses that will be scrapped if selected for funding. 12 Tackling the Climate Crisis at Home and Abroad, 86 Fed. Reg., 7619 (Jan. 27, 2021). 13 49 U.S.C. § 30125, available at https://uscode.house.gov/view.xhtml?req=(title:49%20section:30125%20edition:prelimi%20QR%20{granuleid:USC-prelim- title49-section30125i&f=treesort&num=0&edition=prelim. Page 11 of 46 ------- a. If a fleet has no eligible 2010 or older diesel school buses and is requesting ZE school bus replacements, the fleet can either: i. Scrap 2010 or older non-diesel internal combustion engine buses; or ii. Scrap, sell, or donate 2011 or newer diesel or non-diesel internal combustion engine buses. 2. Have a Gross Vehicle Weight Rating (GVWR) of 10,001 lbs. or more. 3. Be operational at the time of application submission (i.e., is able to start, move in all directions, and has all operational parts). 4. Have provided bus service to a public school district for at least three days/week on average during the 2023/2024 school year at the time of applying, excluding emergency-related school closures14. a. Third-party applicants applying on behalf of a school district that is eligible for prioritization are strongly encouraged to replace existing buses that provided service to either the public school district listed on the application or another school district eligible for priority consideration; for a list of prioritized school districts, please reference the Prioritized School Districts list found on the 2024 CSB Rebates webpage. However, this is not required under this funding opportunity. New replacement school buses must: 1. Have a battery-electric, compressed natural gas (CNG), or propane drivetrain.15 a. Biofuels will not be included as an eligible replacement technology for this funding opportunity.16 2. Be a new vehicle. a. Buses which have been converted to a battery-electric, propane, or CNG drivetrain after the first retail sale are not eligible for funding. b. The conversion of a bus to a battery-electric, propane, or CNG drivetrain is not eligible for funding. 3. Be model year 2023 or newer. 4. Have a Gross Vehicle Weight Rating (GVWR) of 10,001 lbs. or more. 14 Applicants must retain bus log documentation for existing buses to prove that existing buses met the usage requirements described in Section 3 of this Program Guide. If any litigation, claim, or audit is started before the expiration of the five-year period, the recipient must maintain all appropriate records until these actions are completed and all issues resolved. If a selectee is audited and is unable to provide proof of existing bus use that complies with the requirements of Section 3, then the selectee may be required to reimburse the EPA up to the full amount of the rebate award. 15 Note that the EPA is not aware of any CNG school buses currently on the market; applicants requesting CNG buses in their application should verify that the CNG buses they are requesting meet all applicable requirements described in Section 3. Hydrogen and liquified natural gas (LNG) school buses will not be included as eligible replacement technologies for this funding opportunity, but the EPA will continue to evaluate product offerings for future funding opportunities. 16 All diesel school buses can run on a mix of regular diesel and biodiesel, making it very difficult to ensure that biofuel blends of a certain percentage are used exclusively in the vehicle from the start, much less over the vehicle's lifetime. A vehicle which operates on a biofuels mix may have some small emissions benefits depending on numerous factors, but there are no differences in emissions standards between a regular diesel bus and one that may use biofuels as an in-use fuel. Thus, a bus that runs on a biofuel mix will not provide significant environmental benefits beyond the current diesel bus market options. Page 12 of 46 ------- 5. Be certified to conform with all applicable Federal Motor Vehicle Safety Standards (FMVSS).17 6. Be maintained, operated, insured, registered, and charged/fueled according to manufacturer recommendations and state requirements. 7. Be equipped with an EPA certified engine if they are propane or CNG fueled buses.18 8. Not be ordered prior to receiving official notification of selection for EPA funding. 9. Be purchased, not leased or leased-to-own. 10. Serve the school district listed on the application for at least five years from the date of delivery, unless the award is to an eligible contractor and the contract with the school district ends before the end of the five-year period, in which case those school buses may service another local educational agency eligible for prioritization within the same state as the original local educational agency, if the school district listed on the application was eligible for priority consideration. If the original local educational agency was not eligible for prioritization, the new local educational agency still must be in the same state as the original local educational agency but is not required to be eligible for prioritization.19 11. Not be manufactured, retrofitted with, or otherwise have installed, a power unit or other technology that creates air pollution within the school bus, such as an unvented diesel passenger heater. a. Externally vented, fuel-operated passenger heaters are allowed; however, data20 show that the emissions from auxiliary heaters are still harmful. The EPA strongly encourages applicants to consider alternative cold weather mitigation strategies (e.g., insulation of cabin and/or batteries, electric heat pumps, cabin and battery preconditioning)21 until other viable alternatives become available. b. Fuel-Fired Heaters are an allowable addition to replacement buses, but these heaters must be regularly maintained based on the recommended maintenance schedule of the fuel-fired heater manufacturer. The EPA may request maintenance records for fuel-fired heaters that have been installed in replacement buses. As such, replacement bus technicians should keep a maintenance log or equivalent of maintenance conducted on their fuel-fired heaters. See the Appendix for an example maintenance schedule. 12. Not be purchased or otherwise subsidized with other federal funds.22 17 Buses funded under the CSB Program must be certified to conform with all applicable FMVSS for the funded fuel type of the new bus after the final stage of manufacturing. All requirements for new replacement buses may be verified upon audit throughout the project period. 18 Per the Clean Air Act, before entering commerce, all vehicles must receive an EPA certificate of conformity and/or a CARB Executive Order to applicable emissions standards. EPA Heavy-Duty Vehicle and Engine Certification Data is posted here: https://www.epa.gov/compliance-and-fuel-economv~data/annual-certification-data-vehicles-engines-and-equipment. The EPA's engine emission standards may be found at: www.epa.gov/emission-standards-reference~guide/all-epa-emission- standards. 19 Consistent with the eligible requirements for new replacement buses, school districts and supervisory administrative units (i.e., entities that are responsible for the purchase of buses or providing bus service for multiple smaller sub-units of schools or school districts) that are awarded funding based on qualifying for prioritization as high-need under the definition of "very large school district" (i.e., the school district or supervisory administrative unit does not have SAIPE data and meets the threshold for "very large school district" defined in the self-certification document), must ensure that buses purchased with EPA funds continue to primarily serve the prioritized school district(s), as defined in the documentation submitted to verify self- certification, for at least five years. 20 For example, see Karjalainen et al. Atmosphere.2021,12,1105. https://www.mdpi.eom/2073-4433/12/9/1105. 21 For more information on cold weather mitigation strategies, please visit: https://www.epa.gov/system/files/documents/2023-04/elec-schl-bus-cold-weather-consider-2023-04-19.pdf 22 See the Terms & Conditions for more information on the usage of federal funds including tax credits. Page 13 of 46 ------- a. The total CSB rebate award funds and other eligible external funds allocated for the bus replacement(s) cannot exceed the cost of the replacement bus(es). 13. Upon request, be made available for inspection by the EPA or its authorized representatives for five years from the date of delivery to verify the buses are serving their intended purpose. Applicants are also able to request additional funds for ADA-compliant replacement buses equipped with wheelchair lifts. In addition, applicants meeting certain geographical criteria may request funds for shipping new buses. Please see Section 4 for more information on this funding. Table 3: Eligible Bus Replacements by Fuel Type Replacement Bus Fuel Type Existing Bus Fuel Type Propane Compressed Natural Gas Battery-Electric 2010 or Older Diesel Bus El 2011 or Newer Diesel Bus* El Gasoline Powered Bus* El Propane Bus* El Compressed Natural Gas Bus* 0 0 El *Can only be substituted if existing fleet does not have 2010 or older diesel buses available for scrappage; existing, non-diesel internal combustion engine buses that are 2010 or older must be scrapped; existing, diesel or non-diesel internal combustion engine buses that are 2011 or newer may be scrappedsold, or donated. Job Quality in the Clean School Bus Market The clean school bus market is growing rapidly in response to demand for cleaner vehicles. It is important to the EPA that workers manufacturing clean school buses for school districts across the country have high-quality jobs with family-sustaining wages and benefits, safe working conditions, and the free and fair choice to join a union. To promote transparency in the clean school bus industry, the EPA surveyed manufacturers about their job quality and workforce development practices and published the responses on the Clean School Bus website under "Bus Manufacturer Job Quality and Workforce Development Practices." In Fall 2024, the EPA engaged manufacturers in updating their information on job quality and workforce development practices; the EPA plans to share updated responses on the webpage as new responses become available from manufacturers. Applicants are encouraged to refer to the webpage when selecting buses to purchase. Applicants working with one or more of these manufacturers will not receive preference for award over applicants who choose to work with manufacturers not listed on this page. Page 14 of 46 ------- hligible Infrastructure Applicants applying for ZE, battery-electric buses are also able to purchase eligible infrastructure. Specifically, the EPA will provide funding for EV-related infrastructure installation and equipment from the electrical meter to the charging port of the bus. EPA funds must not be used for any infrastructure costs associated with work in front of the electric meter (see Figure 1 below). Eligible infrastructure expenses can include, but are not limited to: • Charging equipment (such as alternating current (AC) Level 2 charging equipment, direct-current (DC) fast charging equipment, or vehicle-to-grid (V2X) enabled equipment, such as vehicle-to- grid or vehicle-to-building); • Design and engineering costs; • Installation costs such as trenching, wiring and electrical upgrades, labor, and permitting; • Related intelligent equipment and software designed to monitor bus and infrastructure performance (such as telematics or charge management software); and • Battery energy storage systems (BESS) associated with replacement electric school buses funded in the program, as well as renewable on-site power generation systems that power the buses and equipment. To be eligible, these systems must be behind the electric meter. Please refer to Figure 1 below for an overview of what is eligible and ineligible, as well as Appendix B for a more detailed list of common eligible and ineligible infrastructure expenses Figure 1: Eligible and Non-Eligible Infrastructure Expenses Charger Safety Certification Requirements Ail chargers purchased under this program must be certified by an Occupational Safety and Health Administration Nationally Recognized Testing Laboratory to appropriate safety standards for integrated Page 15 of 46 ------- EV supply equipment. The EPA encourages applicants to select DC Fast Chargers and AC Level 2 chargers certified to the appropriate standards. Additionally, all AC Level 2 charging infrastructure purchased under this program must be EPA ENERGY STAR certified chargers. Vehicle-to-grid or V2X The EPA recognizes the importance of vehicle-to-grid enabled technology as part of realizing the full value of electric school buses. As such, V2X (including vehicle-to-building) enabled buses and charging equipment are eligible costs under this funding opportunity, up to the per bus funding amounts in Section 4. More information on V2X technologies is available through the CSB Case Studies webpage and a recent webinar the CSB program held on this topic. Additionally, further technical assistance is available from our partners at the Joint Office and Energy and Transportation to support the deployment of V2X projects. Utility Planning The EPA strongly encourages applicants to consider long-term fleet electrical needs when installing charging equipment. EPA funding may be used to install additional electrical capacity between the meter and the bus charging port to support future charging needs (e.g., purchasing and running additional electrical conduit during trenching and wiring upgrades).23 Any applicant applying for ZE school buses is required to submit a Utility Partnership Template and should contact their utility early in the application period to initiate the necessary discussions about planning for the required infrastructure. Resources on this process, including the Coordinating with Electric Utility Partners document, can be found on the Clean School Bus Program website. The Joint Office of Energy and Transportation is also well-equipped to provide free consultation regarding utility planning, communication, and analysis to facilitate the long-term success of awarded projects; both applicants and selectees can email cleanschoolbusTA@nrel.gov to request free assistance. Required Electrician Certification It is important for the EPA to ensure that workers installing EV-related infrastructure have the necessary training to properly and safely install the equipment. Accordingly, all electricians installing, operating, or maintaining EV charging equipment purchased through the 2024 CSB Rebate Program are required to be certified under the Electric Vehicle Infrastructure Training Program (EVITP) or another program approved by the EPA in consultation with the Department of Labor and Department of Transportation. For projects requiring more than one electrician, at least one electrician must meet the requirements above. EPA funding can be used to fund the required certification of electricians under the programs 23 Fleet depots can potentially reduce future costs by installing the necessary electrical conduit to support further electric fleet expansion. Source: Oregon Department of Energy. (2022). Guide to School Bus Electrification. https://www.oregon.goy/energv/energy-oregon/Poeuments/2022~Jan~14~Sehool~Bus~Eleetrifieation~Guidebook.pdf. Page 16 of 46 ------- outlined below if they are clearly identified as line-item expenses in the order document submitted to the EPA outlined in Section 8. Build America, Buy America Requirements Applicants should be aware that Build America, Buy America (BABA) requirements apply to electric vehicle chargers and associated equipment, products, and materials eligible for funding under this Program, including BESS. All applicants should plan to purchase American-made charging infrastructure products. Please refer to the section on BABA located in Appendix A for additional information. Please note that the EPA has determined that although school buses are not covered by the Build America, Buy America Act (BABA), the EPA encourages applicants to consider purchasing domestically produced buses where feasible. Other Eligible Expenses In addition to school buses and associated charging infrastructure, some additional expenses are eligible for 2024 CSB Rebate Program funding, including costs associated with infrastructure labor, workforce training, consulting, delivery, and warranties. Infrastructure Labor Costs EPA funding can also be used for infrastructure labor costs if these services are clearly identified with line-item expenses in the order document submitted to the EPA. While most charging equipment costs can be reported in a purchase order document (hereafter referred to as "order document"), the EPA will accept an approved quote in lieu of a sales or purchase order for eligible infrastructure installation costs, such as design and engineering, or labor, at the time of Payment Request Form submission. An invoice will be required at the time of project close out. Please refer to Section 8 for more information. Workforce Training Costs In the 2024 CSB Rebate Program, EPA funding can be used for costs associated with workforce training for drivers, mechanics, electricians, and other essential personnel. The EPA encourages applicants to partner with their manufacturers, private fleets, local community colleges, labor unions, technical schools, and other education and training providers to provide necessary training and support, including training on high-voltage equipment.24 CSB funding for workforce training is part of the total funding amount per award listed in Table 4; the per bus amounts listed in Table 4 may not be used in whole for workforce training costs. In addition, all applicants must attest in the application to the importance of 24 Please note that while eligible workforce training expenses include training for school district transportation staff and electricians installing and maintaining EVSE, trainings to other entities, such as first responders, are not eligible; however, the EPA has provided resources on the CSB website relevant to first responder and other workforce training resources. Page 17 of 46 ------- workforce planning. If selected for funding, then workforce training costs must be clearly identified with line-item expenses in the order document submitted to the EPA outlined in Section 8. Successfully deploying new clean school buses requires thoughtful workforce planning that considers the training needs of workers, emphasizes student and worker safety, and incorporates worker voice into transition planning. The EPA strongly encourages school districts applying for a rebate to conduct a comprehensive workforce impact assessment to understand how workers and their job duties might be impacted by the new buses, should they be selected for a rebate. More information on conducting workforce planning is available in the Workforce and Training Resources document, and the EPA expects to continually add resources to support school districts with their workforce development activities. Please continue to check the Clean School Bus website's Workforce Development and Training Resources webpage for more materials. Consulting Costs EPA funding can also be used for consulting on bus deployments (including deployment of charging infrastructure, V2X enabled equipment, and charge management services) associated with managing the CSB project if these services are clearly identified with line-item expenses in the order document submitted to the EPA outlined in Section 8.25 The EPA may request additional information, such as a description of the consulting activities, the organization(s) providing the consulting, and how it relates to the deployment of buses and/or charging equipment and infrastructure.26 Note that the Joint Office of Energy and Transportation also provides free technical assistance for planning and deploying new clean school buses; more information on the free assistance available from JOET is available on the CSB Technical Assistance webpage. Delivery Costs EPA funding can also be used for delivery costs so long as they appear on the order document and invoice and do not exceed the maximum funding available as noted in Section 8. As noted in Section 4 below, school districts in Alaska, Hawaii, Puerto Rico, U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, or third-party entities applying on their behalf, will be awarded up to an additional $20,000 per bus for increased shipping costs if selected for funding; shipping costs must be clearly listed as a line-item on order documents to be eligible for the additional funding (see Section 8 for details on order documents). 25 Consulting costs are only eligible for the deployment of buses and/or charging equipment and infrastructure. Consulting activities for new bus deployments might include, but are not limited to, planning for infrastructure, completing site surveys, determining charging needs, and selecting electric school buses. 26 Project management costs may be eligible as consulting expenses in cases where selectees can provide documentation on how the project management directly relates to the deployment of CSB-funded buses and/or infrastructure. Page 18 of 46 ------- Warranty and Service Level Agreement Costs The EPA recommends applicants consider their service and maintenance needs when purchasing buses and charging equipment. Applicants are advised to ensure bus and charger manufacturers have local options to provide warranty repairs, and if required, routine maintenance. Applicants are also encouraged to ask both bus and charger manufacturers for information to better understand if they would be able to provide resolution to malfunctioning equipment within a timeframe that is acceptable to the applicant. EPA funding can be used for bus and charging equipment warranties, if these services are provided through the dealer selling the equipment and are clearly identified with line-item expenses in the order document submitted to the EPA. Similarly, EPA funding can also be used for maintenance service level agreements covering either buses or infrastructure, as long as the services are provided through the manufacturer and the cost of the agreement is clearly identified as a line-item expense in the order document submitted to the EPA. Section 4: Funding Amounts and Number of Applications For the 2024 CSB Rebate Program, the EPA intends to fund up to $965 million for clean and ZE school buses. The EPA may modify this amount based on the applicant pool and other pertinent factors. Funds are subject to availability and total program funding may be higher or lower than the anticipated funds offered.27 The EPA reserves the right to partially fund applications, reject all applications and make no selections under the program, or to make fewer selections than anticipated. The EPA expects to award approximately 60 percent of funds to prioritized applicants, in alignment with the Justice40 Initiative that sets a goal of at least 40 percent of the overall benefits of certain Federal investments flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution (see Section 2 for more information on prioritization criteria under this program). Each rebate application may include up to 50 buses for replacement. School districts applying directly for funds may only submit one application to replace up to 50 buses; districts that contract with multiple private fleets may list more than one private fleet in their application. Other eligible applicants identified in Section 2 may submit multiple applications, but each application must be for buses serving a different school district. The EPA will not fund multiple applications for bus replacements that will serve the same school district.28 If multiple applications are submitted for the same school district, the EPA will ask the school district contacts listed in the applications to choose one application prior to the lottery selection process. As mentioned in Section 2, eligible contractors and nonprofits must certify the school district's 27 The EPA reserves the right to adjust total funds available and funding amounts in order to meet statutory requirements for each state to receive no more than 10% of funds. 2SRegional Education Service Agency (RESA) or Joint Transportation Agency (JTA) applicants with an NCES ID specific to either the RESA or JTA may only submit a single application even if the school districts supported by the RESA or JTA also have their own NCES IDs; the EPA will not review applications submitted for a school district served by a RESA or JTA; rather, the EPA will only review an application submitted by the RESA or JTA. This applies to other entities with a NCES ID that administer school bus service for school districts with individual NCES IDs. Page 19 of 46 ------- approval of the third-party's rebate application by submitting a signed School District Approval Certification. The maximum rebate amount is dependent on (1) the bus fuel type, (2) the bus size,29 and (3) whether the school district to be served by the buses meets one or more prioritization criteria. Regardless of replacement bus fuel type or prioritization status, applicants are able to request up to $20,000 per bus in additional funds for ADA-compliant replacement buses equipped with wheelchair lifts.30 Additionally, school districts in Alaska, Hawaii, Puerto Rico, U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, or third-party entities applying on their behalf, can be awarded up to an additional $20,000 per bus for increased shipping costs if selected for funding31; shipping costs must be clearly listed as a line item on order documents to be eligible for the additional funding (see Section 8 for details on order documents). See Table 4 below for the amounts that the EPA will allocate for selected applicants. Funding levels for ZE buses include combined bus and EV charging infrastructure. Recipients have flexibility to determine the split between funding for the bus itself and the supporting infrastructure.32 Note that Table 4 displays maximum funding amounts. While the actual costs of the new bus or infrastructure may exceed the maximum funding levels in Table 4, the EPA will not provide additional rebate funds to cover the difference in cost; costs above the EPA's maximum funding level are the responsibility of the applicant. Additional funding will not be provided for administrative expenses associated with the rebate application or program implementation. 29 Bus class size is based on Gross Vehicle Weight Rating (GVWR). Class 3-6 have a GVWR of 10,001-26,000 lbs. Class 7+ have a GVWR of 26,001 lbs or more. 30 Existing buses are not required to be ADA-compliant buses equipped with wheelchair lifts for eligible applicants to request funds for ADA-compliant clean school bus replacements equipped with wheelchair lifts. 31 Shipping costs are available to the applicants denoted here regardless of prioritization status or replacement bus fuel type. 32 Standalone infrastructure projects are not eligible for funding under the 2024 CSB Rebate Program. Page 20 of 46 ------- Table 4: Maximum Funding Amount per Replacement School Bus School District Replacement Bus Fuel Type and Size Prioritization Status ZE - Class 7+ ZE-Class3-6 CNG- Class7+ CNG - Class 3-6 Propane - Class 7+ Propane - Class 3-6 Buses serving school districts that meet one or more prioritization criteria Up to $325,000 (Bus + Charging Infrastructure) Up to $245,000 (Bus + Charging Infrastructure) Up to $45,000 Up to $30,000 Up to $35,000 Up to $30,000 Buses serving school districts that are not prioritized Up to $170,000 (Bus + Charging Infrastructure) Up to $115,000 (Bus + Charging Infrastructure) Up to $30,000 Up to $20,000 Up to $25,000 Up to $20,000 * Funding amounts above do not reflect EPA funding available for ADA-compliant wheelchair lifts, EPA funding for shipping costs to non-contiguous U.S. states and territories, nor IRA funding available through IRS-disbursed tax credits for EV bus and infrastructure purchases. Please refer to Section 4 for more information on EPA funding and below for more information on tax credits. Inflation Reduction Act Tax Credits Selectees may be eligible for Inflation Reduction Act (IRA) tax credits applicable to their bus and infrastructure purchases; namely, the Qualified Commercial Clean Vehicle (QCCV) Credit provides up to $40,000 for qualified commercial clean vehicles and the Alternative Fuel Vehicle Refueling Property (AFV) Credit provides up to $100,000 for qualified charging and refueling infrastructure. The EPA will not make tax credit eligibility determinations, and there are various criteria that must be met to qualify for these tax credits. Selectees interested in IRA tax credits should therefore review the Internal Revenue Service (IRS) website for more information on these credits or consult a tax expert. Selectees may be eligible to claim all or a portion of the value of IRA credits using either the new elective pay or transferability mechanisms introduced by the IRS. Elective pay allows applicable entities, such as school districts and tax-exempt organizations, to receive a refund payment from the IRS for claiming an IRA tax credit. Transferability allows entities that can't use elective pay but do qualify for certain eligible tax credits to transfer all or a portion of certain IRA tax credits to third-party buyers. Transferability is an option for claiming the AFV Credit, but not the QCCV Credit. To receive a refund payment from the IRS, applicable entities must use their own unrestricted funding. The value of an IRA tax credit cannot exceed the amount of unrestricted funding that an applicable entity uses to purchase the qualifying equipment. For more information on these new tax mechanisms, Page 21 of 46 ------- please see the IRS website on elective pay and transferability. We highly encourage those interested in these tax mechanisms to review the IRS' FAQ document on elective pay and transferability, found here. Bulk Orders Where applicable post-award, selectees in the same geographic area are encouraged to combine their vehicle and EV charger orders into bulk orders to help benefit from economies of scale and lower shipping costs. Even if they do not apply directly, states and municipal governments may coordinate bulk orders placed in their jurisdictions. Please see the Clean School Bus Program Awards webpage for the latest information on selectees of the CSB Rebate Program. Section 5: Application Process The deadline for submitting applications is Thursday, January 9, 2025, at 4:00 PM ET. Late applications will not be considered for funding. Applications must be submitted using the EPA's Clean School Bus Rebate online application form found here. All applicants are strongly encouraged to initiate their application early in the application period and submit the application well ahead of the application deadline; if you encounter any technical issues submitting your application then please email CleanSchoolBus@epa.gov with clear specifics of the issue you're encountering. The EPA will post a Questions and Answers document on the program website here. The EPA anticipates updating the Q&A document approximately every two to three weeks during the application period. Novel questions submitted to CleanSchoolBus@epa.gov with the subject of "2024 CSB Rebate Question" before 4 PM ET on Thursday, November 14, 2024, including those from program webinars, will be added to this document; questions submitted after this date will be addressed by the EPA as time allows and may not receive a response prior to the application deadline. Throughout the application period and into the later stages of the funding opportunity, the EPA will continue answering questions submitted via email by sending pre-approved, template responses from the helpline that reference the Program Guide or Q&A document. If the pre-approved, template response does not answer your question, then please reply with additional details. To access the online application, organizations applying for funds must have: 1. An active System for Award Management (SAM.gov) registration for the entity that is applying. Please note: a. If an entity other than the school district is applying on behalf of that school district, the SAM.gov-registered entity that is listed on the application as the primary applicant will be the same entity that will receive the funds if selected. The EPA can only provide funds to the SAM.gov-registered entity that is listed as the primary applicant on the application.33 33 As stated, if selected for funding, the EPA can only disburse funds to the SAM.gov entity included in the rebate application; selectees are responsible for ensuring their SAM.gov account remains up-to-date and all information in the SAM.gov account, Page 22 of 46 ------- b. Entity registrations are different than having an individual user account on SAM.gov. More information on entity registrations can be found here. c. The Federal Service Desk (FSD) is the only official and free government resource for assistance with SAM.gov. Please be aware that other websites may offer assistance with SAM.gov registrations for a fee. Before contacting FSD, please first review the SAM.gov help resources. d. Even if your organization is actively registered as an entity, be sure to review all registration information, including: i. Address, Employer Identification Number (EIN), and bank account information. If multiple bank accounts are associated with the entity registration, note the 4- character Electronic Funds Transfer (EFT) indicator in SAM.gov that is associated with the bank account you wish to use for this program. ii. The expiration date of the SAM.gov registration. Be sure to renew the registration well ahead of the application deadline since the renewal process can take several weeks or more. iii. Check whether the entity's SAM.gov registration has any exclusions (also known as suspensions and debarments) preventing the entity from receiving federal financial assistance34. iv. Point of Contact (POC) information, per Item 2 immediately below. e. If your organization has no record of a SAM.gov registration, expired or active, and needs to create a new registration, the simplest entity registration type that can participate in the Clean School Bus Program is the "Federal Assistance Awards Only" registration. 2. Points of Contact (POC) listed under your organization's entity registration in SAM.gov, including: a. An Electronic Business POC with a valid email address. b. A Government Business POC with a valid email address. i. The EPA highly recommends adding an alternate Electronic Business POC and alternate Government Business POC to your organization's entity registration on SAM.gov. ii. Note: Only Electronic Business POC (and alternate) and Government Business POC (and alternate) will be able to create, edit, save, or submit an application. c. POCs with Login.gov accounts. The SAM.gov POCs noted above can prepare for submitting an application for the Clean School Bus Rebates by registering for a Login.gov account with the same email address listed in their POC info on SAM.gov. i. Upon entering the online rebate application via Login.gov, most users will be prompted to complete identity proofing unless they have already completed this process with their Login.gov account. including points of contact and bank account details, throughout the application review period and, if selected for funding, the project period. 34 Potential applicants with a debt off-set or exclusion(s) will not be permitted to apply for the 2024 Clean School Bus Rebates Program. The Applicant Dashboard will not allow the potential applicant to apply until the debt or exclusion has been resolved. Page 23 of 46 ------- By submitting the rebate application, applicants are certifying that the information provided is true to the best of their knowledge. The EPA reserves the right to request copies of documentation, such as bus activity logs, to verify submitted information. The EPA or its authorized representatives may contact an applicant to clarify any information provided by the applicant. Applicants must respond promptly to EPA's request(s) for information during the application period; failure to respond within 5-business days can result in the EPA denying an application for funding. Applicants who are self-certifying under l.b. or I.e. of the prioritization criteria (listed in Section 2) will be able to attest to their self-certification in the online rebate application form. Under this funding opportunity, applicants who are self-certifying must include all required documents pertinent to their intended self-certification criteria as part of their application submission. Applicants will not be permitted to provide supplemental self-certification documents after application deadline on January 9, 2025, 4:00PM ET. See the Prioritization Self-Certification Instructions, which can be found on the CSB Rebates webpage, for more information on self-certification requirements. Please note that the EPA may contact the applicants who self-certified as a prioritized school district to clarify self-certification documentation. Please see Prioritization Self-Certification Instructions for required documentation. Applications submitted under this competition may be released in part or in whole in response to a Freedom of Information Act (FOIA) request. The EPA recommends that applications not include trade secrets, commercial or financial information that is confidential or privileged, or sensitive information that, if disclosed, would invade another individual's personal privacy (e.g., an individual's salary, personal email addresses, etc.). However, if such information is included, it will be treated in accordance with 40 CFR § 2.203. (Review EPA clause IV.a., Confidential Business Information, under EPA Solicitation Clauses.) Supplemental Forms Prior to submitting an application, all applicants will be required to submit one or more of the following supplemental forms. These non-binding forms are designed to support the successful deployment of clean school buses, should the applicant be selected for a rebate, by verifying the awareness of all parties involved in the potential new bus project. • All applicants must submit a School Board Awareness Certification to verify the school board's awareness of the school district's rebate application. It is imperative that the school board is aware of the application and involved in the process of transitioning to a cleaner fleet. In some districts, the school board is required to authorize the purchase of the buses and associated infrastructure projects. • Third-Party applicants (eligible contractors and nonprofit school transportation associations) applying for rebates must submit a signed School District Approval Certification to verify the school district's approval of the third-party's rebate application for new buses that would serve their school district. Page 24 of 46 ------- o If a third-party applies on behalf of a school district and is selected for funding, then that third-party is the applicant and will receive the funding on behalf of the school district. The school district that is listed on the third-party application cannot switch the third- party applicant and the EPA will not send funding to an entity that is not the listed applicant. However, as noted above, school districts are eligible to apply directly, even if they contract out bus service to a private fleet; if selected, the school district could pass funds to the private fleet(s) to replace the buses. Please note that school districts may need to renegotiate their contracts with third-party applicants if selected for EPA funding.35 o School districts that contract out bus service to multiple private fleets may only submit one application but may list multiple private fleets on the application. • Applicants applying for ZE school buses must also submit a Utility Partnership Agreement to verify that the school district's electric utility provider is aware of the school district's rebate application. Applicants are encouraged to reach out to their utility provider at the start of the application period to provide appropriate time to complete the agreement; proactive and ongoing communication between the school district and its local electricity provider(s) is critical to successful infrastructure deployment. 36 All of the above applicable forms must be signed by an authorized representative (please refer to each form for more details on authorized representatives). All applicable supplemental forms are required with application submission; incomplete forms without the requested information and/or signatures will be marked as ineligible for 2024 CSB Rebate Program funding. These forms are intended to ensure applicants are communicating with the necessary parties for successful deployment of new ZE and/or clean buses. Additional resources to support planning for new bus deployment are available on the CSB Technical Assistance webpage. Section 6: Application Selection Process All applications submitted to the EPA by the deadline will undergo a threshold eligibility check prior to the lottery selection process. Applications that do not meet threshold criteria will be marked as ineligible and will not be placed into the lottery selection process. As highlighted in Section 4, the EPA will not fund multiple applications for bus replacements that will serve the same school district. If multiple applications are submitted for the same school district, the EPA will ask the school district contacts listed in the applications to choose one application prior to the lottery selection process. As stated in Section 5, omission of required supplemental documents will warrant an ineligible application that will not be placed into the lottery selection process. As stated in Section 2, applicants self-certifying as prioritized for high-need must submit self-certification documentation at the time of application; omission of self-certification documentation will result in the application being marked as non- 35 The EPA is not involved in any contractual arrangements and can only provide funds to the direct applicant. Selectees are required to adhere to all program guidelines as detailed in this Program Guide. The selectee and contractor(s) should carefully review contract language prior to finalizing a contract to ensure that the selectee will be able to carry out project requirements. If the project is terminated prior to the five years from date of bus(es) delivery, or otherwise fails to adhere to project requirements, then the rebate recipient will be responsible for reimbursing the EPA or other remedies. 36 To facilitate coordination between applicants and utilities, the EPA has partnered with Edison Electric Institute (EEI) and the Beneficial Electrification League (BEL) to develop a list of contacts at utilities across the U.S. For assistance identifying the appropriate point-of-contact at your local utility, please email cleanschoolbusTA@nrel.gov. Page 25 of 46 ------- prioritized prior to the lottery selection process and the application cannot be updated to prioritized if selected in the lottery. Similarly, applicants must upload with the application submission a valid title for all existing buses to be replaced; the bus title should confirm the VIN and model year of that bus. Buses listed for replacement that lack a title at the time of application will not be considered eligible for funding and the amount of funding requested will be reduced accordingly. All eligible applications will be placed in a single ordered list using a random number generator lottery process. The EPA will select applicants for funding from that list in the following order, working from the top (highest rank) to the bottom (lowest rank)37: 1. Clean School Bus Funding Pool: The single highest ranked application in the lottery from each state and territory that submitted an application is selected regardless of vehicle type and prioritization status. 2. Clean School Bus Funding Pool (Prioritized): Remaining applications requesting ZE, CNG, propane, or any combination thereof AND that meet one or more prioritization criteria until the funding pool is allocated.38 3. Clean School Bus Funding Pool (Non-Prioritized): Remaining applications requesting ZE, CNG, propane, or any combination thereof AND do not meet one or more prioritization criteria until the funding pool is allocated. 4. Zero-Emissions Funding Pool (Prioritized): Remaining applications exclusively requesting ZE buses AND that meet one or more prioritization criteria until the funding pool is allocated. 5. Zero-Emissions Funding Pool (Non-Prioritized): Remaining applications exclusively requesting ZE buses AND do not meet one or more prioritization criteria until the funding pool is allocated. Pursuant to the CSB statute, the EPA will ensure that the total amount of funds awarded to entities in a State does not exceed 10 percent of the amount made available for the program during a fiscal year. Because of this, it is possible for an applicant to be skipped over in the selection process in favor of an applicant from a State that has yet to hit the 10 percent limit. Please refer to Figure 2 below for a visual representation of the selection process. 37 As noted in Section 1, for each fiscal year between 2022 and 2026, $500 million is available to fund ZE and clean school buses under the Clean School Bus Funding Pool, and $500 million is available to fund only ZE school buses under the Zero-Emissions Funding Pool. For more information, please refer to: https://www.eongress.gov/117/bills/hr3S84/BlLLS- 117hr3684enr.pdf#page=897 38 The EPA currently expects to award approximately 60% of total funding for the 2024 CSB Rebate Program to prioritized applicants. Page 26 of 46 ------- re 2: Selection Process Flowchart 2024 Clean School Bus Rebates Selection Process All eligible applications submitted to the EPA by the deadline will be placed in a single-ordered list using a random number generator lottery process. The EPA will select applicants for funding in the following order, working from the top (highest rank) to the bottom (lowest rank) of the list, until all funds are allocated from both the Clean School Bus and Zero Emission halves of funding: Step 1: Clean School Bus Funding Pool ¦ The single highest-ranked application in the lottery from each state and territory that submitted an application is selected regardless of vehicle type and prioritization status. Step 2: Clean School Bus Funding Pool ¦ Remaining applications requesting ZE, CNG, propane, or any combination thereof AND that meet one or more prioritization criteria until funding pool is allocated. I Step 3: Clean School Bus Funding Pool ¦ Remaining applications requesting ZE, CNG, propane, or any combination thereof AND do not meet one or more prioritization criteria until funding pool is allocated. Step 4: Zero Emissions Funding Pool ¦ Remaining applications exclusively requesting ZE buses AND that meet one or more prioritization criteria until funding pool is allocated. Step 5: Zero Emissions Funding Pool ¦ Remaining applications exclusively requesting ZE buses AND do not meet one or more prioritization criteria until funding pool is allocated. The EPA currently expects to award approximately 60 percent of total funding for the 2024 Rebates Program to prioritized applicants. Page 27 of 46 ------- Applications chosen in the lottery selection process will then undergo an additional eligibility review during which the EPA will confirm that applicants have met all of the requirements described in this Program Guide. Additionally, any applicant without an active SAM.gov registration at the time of eligibility review may be considered ineligible for selection. If the EPA reaches out to an applicant during the eligibility review and does not hear back from the applicant within 5 business days, the EPA may remove the applicant from the tentatively selected pool. Applications not selected by lottery will remain in random number order on a waitlist. If a selectee does not complete the remaining required steps early in the rebate process, withdraws, or is otherwise deemed ineligible, that selectee will be removed from the program. Those funds may be offered to other 2024 applicants on the waitlist. The EPA will follow the selection process above when reallocating these funds. Applicants may be pulled from the waitlist up to 90 days after the initial selection notification. However, the EPA may opt to use returned funds for future CSB funding opportunities rather than award funds to applicants on the waitlist. Both the selectees and the applicant waitlist for the 2024 CSB Rebate Program will be posted on the Clean School Bus Program website. Section 7: Notification The EPA currently anticipates notifying applicants of their selection status in Spring 2025. Applicants that are selected for funding will receive an electronic status update via email from cleaiischoolbusgepa.gov that includes (1) notification that they have been selected for funding, (2) the maximum amount of funds that have been reserved for them, and (3) instructions on proceeding with the purchase of replacement buses and eligible charging infrastructure. The electronic status update via email from cleaiisdioolbusgepa.gov will serve as the official notification of selection for funding. In special circumstances, the EPA can provide a PDF letter of selection notification upon request. Applicants selected for 2024 CSB Rebate Program funding (i.e., selectees) have the option to withdraw from the Program. The process to withdraw differs depending on whether funding has been disbursed to the selectee. If funding has not been disbursed to the selectee, then the selectee must submit a change request form within the Applicant Dashboard, stating their reason(s) for withdrawal; selectees are responsible for ensuring that all parties involved in the rebate are notified of the withdrawal request. If the EPA has disbursed funds to a selectee, then the selectee must submit a Close Out Form omitting details of all existing buses to be replaced, new replacement buses, and corresponding infrastructure. Submitting a Close Out Form as described will prompt a reimbursement for the full funding disbursed for the 2024 CSB Rebate Program project. Please note that only the selectee can officially withdraw from the 2024 CSB Rebate Program, but a school district who has partnered with a third-party direct applicant can email the Helpline at cleanschoolbusgepa.gov to state their intent to no longer participate within the Program. The selectee and any school district beneficiary are responsible for ensuring that all parties involved in the rebate project are notified of the withdrawal request. The EPA will initiate the withdrawal process after receiving the withdrawal request from the primary selectee point of contact; this action is considered irreversible. Page 28 of 46 ------- Section 8: Payment Request Form, Order Documentation, and Payment Selectees must submit an online Payment Request Form that includes documentation of ordering the replacement school buses, eligible charging infrastructure, and other eligible expenses (as outlined in Section 3) within six months of the date of the selection notification. The EPA will provide the specific deadline for submitting the Payment Request Form in the selection notification.39 As discussed in Section 5, applicants must receive all necessary approvals from their School Board, in addition to completing any other school district processes, to be able to place orders within this timeframe. Documentation to attach to the Payment Request Form includes purchase orders on school district letterhead with purchaser/vendor signatures OR sales orders on vendor letterhead with purchaser/vendor signatures. The date of the order document cannot pre-date the selection notification date and must be dated within 45 days of the initial Payment Request Form submission.40 The order document must clearly show a transaction agreed upon between the organization that will own the replacement bus and a school bus equipment dealer.41 Bus: The order document must include the following information for each bus: 1) Purchaser name, address, and business phone number; 2) Dealer name, address, and business phone number; 3) Signatures from both the purchaser and vendor; 4) Vehicle make, model, model year, fuel type, GVWR, and purchase price; 5) Any additional training, consulting, or warranty costs clearly separated as a line item with purchase price;42 6) Purchase order date; and 7) Delivery date estimate. Infrastructure: The order document for selectees pursuing ZE bus replacements must include the following information for each unit of charging equipment:43 1) Purchaser name, address, and business phone number; 2) Dealer name, address, and business phone number; 3) Signatures from both the purchaser and vendor; 4) Eligible charging equipment make, model, and purchase price;44 5) Purchase order date; and 6) Delivery date estimate. 39 Selectees can request extensions to the Payment Request Form deadline. The EPA will review these requests on a case-by- case basis and may grant extensions if sufficient justification is provided. 40 Selectees must adhere to state and local funding requirements regarding the solicitation and collection of bids necessary to submit a purchase order document. The EPA will not be involved in this process. 41 The EPA is not responsible for the business or contractual agreements between school districts and bus providers; buses must serve the same district for 5 years (except as noted in Section 2 for a change in contract provider). 42 The EPA may request additional information, such as a description of the training services being provided. 43 Eligible charging infrastructure may be included on either the same or a separate order document as the replacement buses. 44 Order documents for infrastructure expenses must specify that the equipment and installation is between the electric meter and the charge port, and clearly list all equipment, labor, and associated installation costs. If the selectee is responsible for front-of-the-meter infrastructure expenses, please clearly separate the costs of these line items in submitted order documents and omit their price from requested funding. Page 29 of 46 ------- Infrastructure Labor Costs: The EPA will accept an approved quote in lieu of a sales or purchase order for eligible infrastructure installation costs, such as design and engineering or labor. Each of these costs must be indicated as line-item expenses within the appropriate order document. Any quote for eligible infrastructure installation costs must include: 1) Purchaser name, address, and business phone number; 2) Vendor name, address, and business phone number; 3) Description of the scope of work and the costs for all eligible expenses;45,46 4) Quote date; and 5) Purchaser signature or associated purchase order showing approval of the quote. The EPA or its authorized representatives may contact a selectee to clarify any information provided in the Payment Request Form; selectees are requested to respond promptly to ensure the process can move forward as swiftly as possible. If, upon review, the Payment Request Form is accurate and includes all required information, the EPA will issue the rebate payment to the bank account associated with the SAM.gov Unique Entity Identifier (UEI) and Electronic Funds Transfer (EFT) indicator associated with the application. The EPA anticipates disbursing funds within approximately 60 days of the submission of a complete and approved Payment Request Form. In many cases, this will result in a selectee receiving funds in advance of the delivery of the bus and charging infrastructure. If selectees receive funds prior to when they need to pay their vendor(s), then selectees must keep rebate funds in a non-interest- bearing account.47 Selectees are highly encouraged to disburse funds to their vendor(s) as expeditiously as possible; they must also retain all documentation of how funds were stored and disbursed in accordance with document retention requirements for audits in Appendix A (Terms and Conditions). To assist with the EPA's Office of the Chief Financial Officer's ongoing financial review, selectees must email (EPA-CSB-FinancialReportinggepa.gov) within 10 days of spending their funds on eligible expenses or passing the rebate funds to a third-party to complete the purchase for eligible expenses. NOTE: If the bus, eligible charging infrastructure costs, and other eligible costs in the submitted Payment Request Form are lower than the rebate award amount listed in the official notification of selection, then the EPA will reduce the rebate funding amount to the actual costs. Section 9: Change Request Form The Clean School Bus Rebates Program Change Request Form allows Clean School Bus Applicants and Selectees an opportunity to request edits, extensions, and withdrawals directly from the CSB Applicant 45 Order documents and quotes for infrastructure installation must specify that the work is being performed between the electric meter and the charge port, and clearly list installation cost items, such as trenching, wiring, labor, etc. If the selectee is responsible for front-of-the-meter infrastructure expenses, please clearly separate the costs of these line items in submitted order documents and omit their price from requested funding. 46 The EPA will only fund up to the total of eligible expenses reported in the quote (or the maximum funding reserved for the selectee after bus and other infrastructure costs are accounted for, whichever is less). If the actual costs reported at project Close Out are less than the quote, then the selectee will be expected to reimburse the EPA. 47 If a selectee does not have ready access to a non-interest-bearing account, then they may keep funds in an interest-bearing account. However, any interest earned in excess of $25 must be remitted to the EPA at time of closeout. At time of closeout, the recipient must submit a signed memo to certify the amount of interest earned. The memo must include Rebate number, total amount of interest earned, date payment was remitted to the agency, a signature, and organizational title. Recipients must remit payments to the EPA via Pay.gov using their ACH Banking information or PayPal account: Pav.gov-RTP Finance Center Accounts Receivable Submission Form. Interest earned totaling less than $25 at time of closeout does not have to be remitted to the agency and can be retained by the rebate recipient (see Appendix A, Terms and Conditions, for details). Page 30 of 46 ------- Dashboard. The CSB Program Change Request Form is available on a submitted CSB Application, a draft or submitted Payment Request Form and Close Out Form found within the CSB Applicant Dashboard. An applicant may request changes to any bus information at anytime prior to the application submission deadline. However, after the application submission deadline, only certain information may be changed. Selectees are able to request a change in the number of buses, and/or size of bus from what they requested in their application prior to submitting their Payment Request Form, but the EPA will only provide up to the awarded rebate amount listed in the application. The funding amount per bus will be adjusted per Table 4 depending on the changes made to the replacement buses. The EPA will review these requests and may approve on a case-by-case basis. To request a change to a form in the CSB Applicant Dashboard, the Applicant must submit a Change Request Form identifying the type of change and reason for the change. To access the Change Request Form, the applicant must select the Change Form Icon located to the right of the specific form they are requesting to change. The applicant must ensure all required information is provided prior to Change Request Form submission. The Clean School Bus team expects to respond to most edit and extension requests within 3-5 business days and most withdrawal requests within 21 business days. Any questions or challenges that an applicant has accessing the Change Request Form should be addressed through the Clean School Bus Helpline at CleanSchoolbusgepa.gov. Section 10: Scrappage, Sale, or Donation of Existing Buses Section 3 outlines the eligibility requirements for existing buses to be replaced, including buses that must be scrapped and buses that may be scrapped, donated, or sold. Selectees must scrap any model year 2010 or older buses prior to scrapping, selling, or donating any model year 2011 or newer buses; within those requirements, fleets are encouraged to scrap the oldest, eligible buses in their fleet first as to maximize emissions reductions. Fleets must replace existing buses by the end of the project period, but there can be overlap between receiving new replacement buses and replacing existing buses. For example, a fleet that takes delivery of new replacement ZE school buses six months before the project period deadline might retain the existing buses as back-ups for up to six months before replacing them as they train drivers on operation and charging procedures for the new replacement buses. Scrappage Requirements: The preferred scrappage method is cutting a three-inch-by-three-inch hole in the engine block (the part of the engine containing the cylinders) and cutting or crushing one chassis rail between the axles. Other scrappage methods, such as shredding and crushing, are acceptable if they render the engine block and chassis permanently and completely inoperable. Selectees with questions about whether their planned scrappage method will comply with the requirement of the existing engine and chassis being completely and permanently inoperable should email their question to cleaiisdioolbusgepa.gov detailing how the method would permanently disable the engine and chassis. All scrappage methods must comply with the evidence requirements listed below, including digital photos, to document the engine and chassis being rendered permanently inoperable. Page 31 of 46 ------- Fleets that scrap buses must document the scrappage, including: 1. Photographs of the following: side profile, VIN label, engine label, engine pre-hole, engine after hole, and chassis cut. i. Each photo must be clearly labeled with the last 4 digits of the bus VIN. ii. Please see Appendix C for example scrappage photos. 2. A letter signed by a representative of the scrap yard or other entity that performed the scrappage that: i. Lists the VINs of the buses that were scrapped; ii. Affirms the date(s) that the buses were scrapped; iii. Details the method of scrappage that aligns with the requirements outlined above; and iv. Lists contact information for the entity that performed the scrappage. See Appendix D for a template of a scrappage letter that fleets can use. Equipment and vehicle components that are not part of the engine or chassis may be salvaged from the bus being replaced (e.g., seats, tires). The destroyed engine and chassis may be sold for scrap metal, provided that the bus is disposed of in accordance with federal and state requirements for vehicle disposal. Selectees are not required to report income from scrappage to the EPA. Selectees must adhere to state and local funding requirements regarding scrappage. Sale and Donation Requirements: Fleets requesting ZE buses that do not have eligible vehicle model year 2010 or older diesel buses to scrap may instead replace 2011 or newer buses by donating or selling those buses. The selectee must retain documentation of that transaction that includes48: 1. The name of the fleet donating or selling the buses; 2. The name and contact information for the entity taking ownership of the buses; 3. The VINs of the buses that are donated or sold; 4. Photographs of the buses' side profile, VIN label, and engine label; 5. If sold, the amount the buses were sold for; and 6. The date of the transaction. Section 11: Close Out Form Selectees must submit an online Close Out Form demonstrating that they have received their replacement buses, any eligible charging infrastructure, and have replaced their existing buses. The Close Out Form must be submitted within two years of the date of the initial selection notification. The EPA will provide the specific deadline in the selection notification.49 The Close Out Form will require 48 Please refer to Section 3 for details on eligible replacement buses if choosing to replace a 2011 or newer bus. Refer to Appendix A, Terms and Conditions, for details on document retention requirements. 49 Selectees can request extensions to the project period deadline. The EPA will approve these requests on a case-by-case basis based on sufficient justification. For example, the EPA may grant an extension if a bus is on order but is experiencing manufacturing or delivery delays. Please refer to Section 9 for details on requesting an extension. Page 32 of 46 ------- selectees to attach:50 1. For existing buses being scrapped, scrappage photos and letter for buses being replaced (see Section 10); 2. For existing buses eligible to be sold or donated, documentation of the vehicle sale or donation (see Section 10); 3. A scan of the invoices for the replacement buses and eligible infrastructure; a. If training, consulting, or warranty expenses were included on the order document per Section 8, these costs must also be included on the bus invoice. 4. A scan of proof of delivery for the replacement buses and eligible infrastructure (e.g., dated bill of lading); 5. One photo of the exterior side profile of each replacement bus, labeled with the last 4 digits of the bus VIN. One photo of the new bus with the VIN number displayed is also required. The photo should be a readable display of the VIN plate rather than a photo of just the bus with the VIN imposed over the photo; 6. A scan of the new bus title for each replacement bus; 7. One photo of the VIN label for each replacement bus; and 8. One photo of each EV charger after installation is completed if EPA funds were used for charging infrastructure; photo must include data plate for the EV charger with the serial number and other identifying information (e.g., model, make, manufactured date). The EPA will not provide additional funds beyond those approved in the Payment Request Form and, if the bus or infrastructure costs reported at the time of Close Out Form submission are less than the bus or infrastructure costs in the Payment Request Form, then the selectee will be responsible for reimbursing the EPA the difference. The EPA or its authorized representatives may contact a selectee to clarify any information submitted in the Close Out Form. After submitting the Close Out Form and responding to any questions from the EPA on the information in that form, selectees must continue to follow the Terms and Conditions in Appendix A. The EPA strongly encourages selectees to consider battery repurposing and recycling opportunities in electric school bus planning and procurement. Selectees should work with their bus suppliers to understand battery repurposing and recycling options. Electric vehicle battery recycling is not a requirement of the 2024 CSB Rebate Program, and no information regarding a selectee's intention to recycle their batteries is necessary for an approved Close Out Form. However, selectees must conform with all applicable requirements for waste disposal of electric bus batteries, which can currently be managed as Universal Waste under the Resource Conservation and Recovery Act. For additional information and resources related to battery repurposing and recycling, please refer to the CSB Best Practices for School Districts and Fleets webpage. For additional questions on batteries and other technical subjects, please contact the Joint Office of Energy and Transportation or via email at cleanschoolbusTAgnrel.gov. 50 The EPA may request additional information in the online Close Out Form. Page 33 of 46 ------- Appendix A: Terms and Conditions By submitting an application, applicants certify that they have read and agree to comply with the requirements of this Program Guide, including the following 2024 CSB Rebates Terms and Conditions and those within the Official Selection Letter. This certification is a material representation that the EPA will rely upon in providing funds for vehicle replacement rebates. False certifications may result in criminal prosecution under 18 U.S.C. § 1001, civil liability under the False Claims Act, 31 U.S.C. § 3729 et seq. and/or the Program Fraud Civil Remedies Act, 31 U.S.C. § 3801 et seq., suspension and/or debarment pursuant to 2 C.F.R. Part 180, and/or other criminal, civil or administrative penalties, sanctions, and remedies available to the Federal government. Cancellation of Rebates If a selectee fails to submit all the required forms and documents by the deadlines, voluntarily withdraws from the program, or does not fully comply with the program requirements, then the rebate may be canceled. The EPA will notify the selectee prior to canceling any rebate. If funds have already been disbursed to a selectee for a cancelled rebate, then the selectee will be required to return the cancelled rebate funding to the EPA within a timeframe established by the EPA upon confirmation of withdrawal. The process for reimbursing funds will be initiated through completing the Close Out Form for the project as part of the withdrawal process; the EPA will provide additional information on the reimbursement process at the time of initiating withdrawal.51 Under the FY 2023 Consolidated Appropriations Act, the 2024 CSB Rebate Program will allow an exception to the requirement that a new replacement bus serve the school district listed on the application for a minimum of five years in the case that a third-party contract expires and the bus continues to serve another similarly prioritized district within the same State as the original district.52 As such, an expired or terminated contract between third-party contractor selectee and their school district does not require withdrawal from the funding opportunity, although withdrawal can be requested by the selectee. Selectees (school districts or third-parties) that do not want to continue as a participant within the 2024 CSB Rebate Program for any reason should submit a request to withdraw through the Change Request Form as noted in Section 9. Withdrawal requests must be submitted by the primary selectee point of contact listed on the original application for funding; selectees must attest in their withdrawal request that all parties involved in the rebate are aware of the request to withdraw. 51 Per Section 8, selectees should keep any funds not immediately disbursed to a vendor(s) in a non-interest-bearing account. However, if a selectee does not have ready access to a non-interest-bearing account, then they may keep funds in an interest- bearing account. Any interest earned in excess of $25 must be remitted to the EPA at time of closeout. At time of closeout, the recipient must submit a signed memo to certify the amount of interest earned. The memo must include Rebate number, total amount of interest earned, date payment was remitted to the agency, a signature, and organizational title. Recipients must remit payments to the EPA via Pay.gov using their ACH Banking information or PayPal account: Pay.gov-RTP Finance Center Accounts Receivable Submission Form. Interest earned totaling less than $25 at time of closeout does not have to be remitted to the agency and can be retained by the rebate recipient. 52 The EPA will not be involved in the contractual agreements between school districts and their third-party partners. Page 34 of 46 ------- Replacement buses must: • Meet all requirements listed in Section 3 of this Program Guide. • If the replacement school bus fails to meet the requirements in this Program Guide, the selectee may be required to return up to the full amount of the rebate award to the EPA. The amount required to be returned is at the discretion of the EPA and will be determined on a case-by-case basis. Existing buses must: • Meet all requirements listed in Section 3 of this Program Guide; • Be scrapped, donated, or sold based on the requirements of Section 3 and Section 10 of this Program Guide. If the existing school bus fails to meet the requirements in this Program Guide, the selectee may be required to return up to the full amount of the rebate award to the EPA. The amount required to be returned is at the discretion of the EPA and will be determined on a case-by-case basis. Signage All award recipients are expected to comply with the EPA's signage policy53 for the Clean School Bus Program. For construction projects funded in whole or in part by the Bipartisan Infrastructure Law through the EPA, recipients must place a sign at construction sites that display the Investing in America emblem and identify the project as a "project funded by President Biden's Bipartisan Infrastructure Law." The sign must be in an easily visible location that can be directly linked to the work taking place and must be maintained in good condition throughout the construction period. The EPA has created an Investing in America Signage website that includes pdf files of the signs that are print-ready, as well as a template that can be customized to include the logo of a partner organization. Signage specifications can be found in the EPA Logo Guide linked here. For rebate projects that do not include construction for the installation of new charging equipment, selectees should comply with the signage policy by placing the appropriate sign where the new buses are stored. Restriction for Mandated Measures Pursuant to 42 U.S.C. 16132(d)(2), no funds awarded under the 2024 Clean School Bus Rebate Program shall be used to fund the costs of emission reductions that are mandated under federal law. Restriction on Other Funding Sources 53 For more information, please visit: https://www.epa.gov/invest/investing-america-signage. Page 35 of 46 ------- The proposed replacement bus and any associated charging infrastructure to be paid for in part by CSB funds must not also be funded by other federal funds.54 Fleets can use external non-federal funding sources as part of their bus replacement project but must confirm with the source of those funds that they are not pass-through federal funds55. Volkswagen (VW) Environmental Mitigation Trust funds may be used as external funds provided that the Volkswagen Trust funds are associated with Eligible Mitigation Action (EMA) #2. Volkswagen Trust funds under EMA #10, the DERA Option, are not eligible external funds. If an applicant plans to use state or local funding for buses and/or infrastructure, then the applicant must ensure that their procurement process adheres to any applicable state or local requirements. A selectee's total 2024 CSB Rebate funds and other eligible external funds cannot exceed the cost of their replacement bus(es) and eligible infrastructure listed on their Payment Request Form and Close Out Form submitted to the EPA. Proper Management of Rebate Funds Selectees should work with their vendors to spend EPA funds on eligible project expenses, as described in Section 3 of this Program Guide, as expeditiously as possible after receiving funds from the EPA; to assist with the EPA's Office of the Chief Financial Officer's ongoing financial review, selectees must email EPA-CSB-FinancialReporting@epa.gov within 10 days of spending their funds on eligible expenses or passing the rebate funds to a third-party to complete the purchase for eligible expenses. If there is an extended period of time between receiving EPA funds and spending those funds, then selectees must adhere to the following requirements. Specifically, selectees must follow proper financial management practices to ensure that these funds are only used for eligible expenses and should keep these EPA funds separate from other funds the selectee might have for general expenses. Funds should be kept in a non-interest-bearing account. If the selectee does not have ready access to a non-interest- bearing account, then they may keep the funds in an interest-bearing account, but if any interest above $25 is earned on EPA funds, then that interest must be returned to the EPA in accordance with the requirements outlined in Section 8.56 To assist with the EPA's Office of the Chief Financial Officer's ongoing financial review, selectees must email EPA-CSB-FinancialReporting@epa.gov within 10 days of spending their funds on eligible expenses or passing the rebate funds to a third-party to complete the purchase for eligible expenses. 54 The restriction on stacking Federal funds does not apply to federally funded loans, federally guaranteed loans, or other instruments that require repayment with non-federal funds. 55 Pass-through federal funds are funds issued by a federal agency to a state agency or institution that are then transferred to other state agencies, units of local government, or other eligible groups per the award eligibility terms. Please visit the following webpage for additional details on pass-through funding: www.grants.gov/learn-grants/grant-terminology.html 56 At time of closeout, the recipient must submit a signed memo to certify the amount of interest earned. The memo must include Rebate number, total amount of interest earned, date payment was remitted to the agency, a signature, and organizational title. Recipients must remit payments to the EPA via Pay.gov using their ACH Banking information or PayPal account: Pay.go' ance Center Accounts Receivable Submission Form. Interest earned totaling less than $25 at time of closeout does not have to be remitted to the agency and can be retained by the rebate recipient. Page 36 of 46 ------- If a selectee chooses to withdraw from the program, then they must return all awarded funds and any interest earned on those funds. The process for reimbursing funds awarded through withdrawal, including any interest earned, will be initiated through completing the Close Out Form for the project or as part of the withdrawal process; the EPA will provide additional information on the reimbursement process prior to Close Out Form submission. EPA Responsibilities The EPA anticipates notifying rebate applicants of their selection status in Spring 2025. The EPA anticipates disbursing funds within approximately 60 days of the submission of a complete and approved Payment Request Form. The EPA may request additional documentation from a selectee prior to issuing funds if the EPA determines that any required information is missing or incomplete. In such a case, the EPA will provide the selectee with a reasonable amount of time to submit additional information. The EPA will post lists of selected and waitlisted applicants on the Clean School Bus website. Use of Submitted Information The EPA will use information submitted by applicants in its annual report to Congress that is due no later than January 31 of each year of the program. Pursuant to the CSB statute, the report will include: (A) The total number of applications received; (B) The quantity and amount of rebates awarded and the location of the recipients of the rebates; (C) The criteria used to select the recipients; and (D) Any other information the Administrator considers appropriate. The EPA reserves a royalty-free, nonexclusive and irrevocable right to reproduce, publish or otherwise use, and to authorize others to use, for federal purposes, submitted bus photos, including use in program materials. Program Audit The EPA will conduct random reviews of selectees to protect against waste, fraud, and abuse. As part of this process, the EPA, or its authorized representatives, may request copies of rebate documents from prior selectees who have received rebates, or may request documentation from current selectees to verify statements made on the application, payment request, and close out forms. Areas of interest for audit may include but are not limited to existing bus eligibility, replacement bus requirements, BABA compliance, and financial documentation. To assist with financial auditing, once a selectee disburses funds to their vendor, then they must email EPA-CSB-FinancialReportinggepa.gov within 10 business days to notify the EPA that funds have been expended. The EPA or its authorized representatives, including contractors and the Office of the Inspector General, may also request site visits to confirm documentation is on hand and that replacement buses are still in service for the school district listed on the application. Selectees are expected to comply with site visit requests, recordkeeping requirements, and document requests for five years from the date of Page 37 of 46 ------- replacement bus delivery, or risk cancellation of an active rebate application or other enforcement action. Record Retention Requirements Selectees must retain all financial records, supporting documents, accounting books, and other evidence of Rebate Program activities for five years after delivery of the replacement buses. This includes but is not limited to the retention of bus log documentation for existing buses to prove that existing buses met the usage requirements described in Section 3 of this Program Guide. If any litigation, claim, or audit is started before the expiration of the five-year period, the recipient must maintain all appropriate records until these actions are completed and all issues resolved. Civil Rights Obligations Recipients must comply with Federal statutes and regulations prohibiting discrimination in EPA assistance programs, as applicable. Among other requirements, recipients of EPA assistance must comply with Title VI of the Civil Rights Act of 1964 and 40 C.F.R. Part 7, which prohibits discrimination based on race, color, and national origin, including limited English proficiency.57 Recipients of EPA assistance must also comply with Section 504 of the Rehabilitation Act of 1973, which prohibits discrimination against persons with disabilities by entities. Audits may be conducted to ensure compliance. Union Neutrality Rebate funds must not be used to support or oppose union organizing, whether directly or as an offset for other funds. Build America, Buy America (BABA) Requirements Electric vehicle charging equipment meets the definition of infrastructure under the Build America, Buy America (BABA) Act that took effect May 14, 2022. The Clean School Bus program requires funds from this program to support domestically produced electric vehicle chargers and associated equipment, products, and materials. All applicants should plan to purchase American-made charging infrastructure products; that is, all of the iron, steel, manufactured products, and construction materials used in the infrastructure project must be produced in the United States. This includes, but is not limited to, the EV charger, all wiring or fixtures to support the charging equipment, breaker panels or subpanels, and conduit from the meter to the panel. Additional information on BABA requirements for manufactured products is available in 2 CFR 184.5. Depending on the specifics, there are agency-wide, program-wide, project-specific, and product-specific waivers that may apply or be appropriate to pursue. The EPA has issued several agency-wide general applicability waivers that may be applicable to certain projects funded by the CSB program. Recipients 57 Pursuant to a preliminary injunction issued by the U.S. District Court for the Western District of Louisiana on January 23, 2024, the EPA will not impose or enforce any disparate-impact or cumulative-impact-analysis requirements under Title VI against the State of Louisiana or its state agencies. Page 38 of 46 ------- are encouraged to review the EPA BABA website for the latest waiver information here. Although selectees may be able to apply for a project-specific waiver for items not produced domestically, all applicants should plan to purchase American-made charging infrastructure. Please note that while the EPA has determined that although school buses are not covered by BABA, the EPA encourages applicants to consider purchasing domestically produced buses where feasible. Page 39 of 46 ------- Appendix B: Infrastructure Eligibility Resource Applicants applying for ZE buses are also able to use funds for eligible infrastructure. Specifically, the EPA will provide funding for EV-related infrastructure installation and equipment from the electrical meter to the charging port of the bus as outlined in Section 3. Below are examples of eligible and ineligible EV-related infrastructure costs. Any questions regarding eligibility should be submitted to cleaiischoolbusgepa.gov. Infrastructure Installation Guidance: Common Eligible Infrastructure Installation Expenses (must be behind the meter): • Behind-the-meter (BTM) transformers and their installation. • Front-of-the meter transformers and services to install are not eligible expense under this funding opportunity, but behind-the-meter transformers and their installation are eligible for EPA funding58 • Installation of higher amp service • Installation of additional wiring or fixtures to support charging equipment • Installation of wiring from the meter to the panel • Installation of breaker panel or subpanel • Trenching and installation of PVC/conduit from the meter to the panel, chargers • Disconnecting and removing existing hardware/panels/wiring • Installation of mounting equipment for panel • Assembly and installation of EV chargers • Installation of concrete bases for EV chargers • Installation of additional capacity in panel for additional EV chargers in the future • Installation of conduit, wiring for additional EV chargers in the future • Design, drawings, field engineering, permitting • Installation of technologies to promote resilience and adaptation, including vehicle-to-grid (V2G) and vehicle-to-everything (V2X) technologies59 Common Ineligible Infrastructure Installation Expenses (cannot be in front of the meter): • Installation of cabling or wiring from front-of-the-meter (FTM) transformer to meter • Trenching and installation of PVC/conduit between FTM transformer and the meter • Trenching and installation of PVC/conduit from the FTM transformer to the utility pole • Setting of new utility pole • Installation of FTM transformer foundation • Installation of FTM transformer 58 While all transformers and associated installation services were ineligible under a previous CSB funding opportunity, regardless of whether or not the equipment and installation occurred in front-of-the meter or behind-the-meter, EPA has determined that behind-the-meter transformers and their installation are eligible under this funding opportunity. 59 Best practices for zero-emission bus resiliency can be found here: calstart.org/microgrids-best-practices-for-zeb~resiliency/ Page 40 of 46 ------- Charging Equipment Guidance: Common Eligible Charging Equipment Expenses: • Energy Star certified Level 2 chargers • Nationally Recognized Testing Laboratory (NRTL) certified DC Fast Chargers, including V2X- enabled equipment • An example of this is a DC Fast Charger that has been certified to Underwriter Laboratories (UL) standard UL 2202 • AC Level 2 Chargers and DC Fast Chargers certified through the Underwriters Laboratories (UL) Standards • Commissioning, startup, testing of equipment • Charge management systems • Network, data plans for connectivity • Warranty • Shipping Common Ineligible Charging Equipment Expenses: • Level 2 chargers without Energy Star certification o This includes white-labeled products that are sold as a different brand name than the model that is listed on the Energy Star website • DC Fast Chargers without NRTL certification • AC Level 2 Chargers without NRTL certification Page 41 of 46 ------- Appendix C: Sample Scrappage Photos 1) Chassis rail cut in half - DestroyedChassisRail[INSERT LAST 4 DIGITS OF VIN].jpg 2) Engine block with 3" drilled hole - DestroyedEngineBlockpNSERT LAST 4 DIGITS OF VIN].jpg 3) Shredded engine - DestroyedEngine[INSERT LAST 4 DIGITS OF VIN].jpg. Page 42 of 46 ------- Note: Any alternative scrappage method, including shredding, needs prior EPA approval. Email cleanschoolbus(S)epa.gov with subject line, "2024 CSB Rebates Alternative Scrappage Method" for approval. Page 43 of 46 ------- Appendix D: Sample Scrappage Certification Letter [PRINTED ON LETTERHEAD OF SALVAGE YARD OR OTHER ORGANIZATION SCRAPPING BUSES] [DATE] I confirm that the buses listed below were scrapped according to Section 10 of the 2024 Clean School Bus Rebate Program Guide. The program requires that scrapped buses must be permanently disabled by (1) crushing the engine or creating a 3" diameter or larger hole in the engine block and (2) cutting or crushing one chassis rail between the axles, or a similar scrappage method that renders the engine and chassis permanently inoperable. Photos were taken of the destroyed engines and chassis rails to document the scrappage. [NAME OF ORGANIZATION THAT SCRAPPED THE BUS] performed the bus scrappage on [DATE], [BUS 1VIN] [BUS 2 VIN] [BUS 3 VIN] [SIGNATURE OF SALVAGE YARD REPRESENTATIVE] [PRINTED NAME OF SALVAGE YARD REPRESENTATIVE] [PHONE NUMBER OF SALVAGE YARD] fADDRESS OF SALVAGE YARD1 Page 44 of 46 ------- Appendix E: Sample Fuel Fired Heater (FFH) Maintenance Schedule The EPA requires all auxiliary fuel fired heaters to be regularly maintained based on the recommended maintenance schedule of the fuel-fired heater manufacturer. Selectees should review their heater's equipment manual to identify if a maintenance schedule is included or contact the manufacturer or school bus dealer if already installed at the time of delivery. Whenever existing, a manufacturer's maintenance schedule should be given deference. If no manufacturer maintenance schedule exists, the following example schedule can be used to help identify best practices for maintaining your fuel fired heater. Item Timeframe Action Visual inspection Weekly (or as manufacturer recommends) Inspect mounting brackets, fuel line, harnesses, coolant lines, exhaust system, heat exchanger, batteries, nozzles, air pressure, electrical systems, etc. Run the heater Monthly (or as manufacturer recommends) Run the heater once a month (at a minimum in cold weather season) or as frequently as once a week for at least 15 minutes to ensure fresh fuel is circulated in the critical components. Check all water and fuel connections for leakages and check tightness of hose clamps. Check fluids Annually (or as manufacturer recommends) Check fuel levels, cooling fluids, anti-freeze, lubricants, etc. and top off if needed. If fluids are contaminated or need full replacement, flush the fluid out and refill as needed. Replace filters if needed. Use proper waste disposal techniques as required in your area. Replace fuel nozzle Annually (or as manufacturer recommends) Replace the fuel nozzle annually or according to manufacturer recommendation. Replace fuel pump Every 5 years (or as manufacturer recommends) Replace the fuel pump according to manufacturer recommendation. Examine fuel screen, gaskets, and filters and replace if needed as well. Page 45 of 46 ------- Perform a Annually (before each cold weather 1. Perform basic visual inspection. tune-up season, or as manufacturer recommends) 2. Clean heater, enclosure, air intake Buses with higher duty cycles (clean any debris and use compressed may require tune-ups 2 or 3 air to blow out the compartment, times a year; consult with heater look at the opening around the manufacturer. exhaust pipe, look for wear and Also consult with manufacturer if damage, etc.). Consult with heater a licensed expert or official company for proper cleaning technician needs to complete techniques of the heater. maintenance. 3. Check the exhaust system for dents, corrosion, etc. Replace pipe and clamps if needed. Clean the pipe if there is significant carbon buildup. 4. Check heat exchanger and clean it. Remove combustion deposits and remove required parts to access the inside of the heat exchanger. Use manufacturer recommended techniques to clean the inside. 5. Check cooling system, replace hoses and connections if needed. 6. Check the batteries and power connections to make sure they are not weak or corroded. Conduct a load test and replace if needed. 7. Check fuel system for damaged fuel lines or leakages, check that fittings are secure. Replace if needed. 8. Remove and inspect fuel filter. Clean or replace if needed. 9. Remove and clean fuel nozzle using manufacturer recommended methods. 10. Replace compressor air filter. 11. Check wiring harnesses for damage, replace if needed. 12. Check the air pressure and bring to recommended specs. 13. Conduct operation test on all heat settings and durations. 14. Check all screw connections and clamps for tightness before completion of tune-up. Page 46 of 46 ------- |