SEC 74 Clean School Bus Grant

Michigan’s Clean Bus Energy Grant Opens TODAY!

August 1, 2024

APPLY NOW

Overview

Michigan Department of Education (MDE) in collaboration with the Michigan Department of Environment, Great Lakes, and Energy (EGLE) and Michigan Association of Pupil Transportation (MAPT) opened applications for the 74(b) Clean Bus Energy Grant, a $125 million program aimed at helping Michigan school districts replace aging diesel school buses with cleaner alternatives.

Through the program, public school districts can receive up to 70% of the cost of an electric school bus, charging station and infrastructure. The program also works to prioritize high-need districts, examining criteria like income, environmental risk factors, and rural or indigenous populations. Schools that meet these criteria are eligible for additional funding to cover up to 90% of the total project costs. Alternative fueled buses will be funded at lower levels.

IMPORTANT UPDATES to the MDE 74 (b) Clean Bus Energy Grant

The 74(b) Clean Bus Energy Grant is OPEN for ROUND #2: August 1, 2024 till 8:00 PM ET on October 12, 2024. We collected feedback from schools, advocates and manufacturers on Round #1 and modified the program to the best of our ability to meet the needs of school districts.  Please note the following key changes to the program guide for Round #2:

  • Scrappage requirement is relaxed further: See page 3. Eligible Buses for Replacement.

Eligible buses for replacement: 

For each diesel school bus to be eligible for replacement, the following requirements must be met and verified with the specified information/documentation below:

  • Geographic location and ownership: 
    • Replacement buses must have served a school district within Michigan and have been owned and operated by the entity for at least 24 months immediately prior to the date of application.
  • Model years: 
    • If the diesel school bus is model year 2010 or older, it is required to be scrapped to ensure that it will not be operational (See F. Vehicle Disablement Requirements). Required documentation for the buses being scrapped are:
      • Vehicle ID Number (VIN #) and model engine year
      • Copy of the bus title
      • The bus must be currently “green tagged” by state inspectors as cleared for operation according to state regulations.
    • If the diesel school bus is model year 2011 or newer, it may be scrapped, sold, auctioned or donated to another district or entity.
      • Vehicle ID Number (VIN #) and model engine year
      • Copy of the bus title
      • The bus must be currently “green tagged” by state inspectors as cleared for operation according to state regulations.
  • Open period for the program is extended:
    • The program will be open from August 1st through 8:00 PM ET on October 12th, 2024 in response to requests to prolong the program duration and timing for school districts.
  • Clarification of document requirements: See Appendices, pages 10-14.
    • The program guide has been updated to clarify when the Service Level Agreement (SLA) and Scrappage forms are DUE:
    • SLA: Due once purchase agreement has been placed.
    • Scrappage: Due at project completion: 2 years after award announcement.
  • Support:
    • Third party entities are still ineligible to apply on behalf of school districts; however, we have created a checklist to assist schools in their data collection for the application listed under “Resources”. We will continue to hold weekly office hours (Fridays from 9:30-10:30 AM) and questions can be emailed to [email protected].

Resources

Application Process

To access the application, school districts are to log into NexSys using the MILogin portal and search for 74(b) Clean Bus Energy Grant. Proposals must be submitted electronically to the NexSys portal and are due no later than 8:00 PM ET on October 12, 2024. If all funds are not exhausted, future funding rounds with or without modifications to the program will occur.

Please note the following pages that must be filled out and uploaded with the grant application:

  • Page 11 MI Clean School Bus Program School Board Awareness Certification
  • Page 12 MI Clean School Bus Program Utilities Awareness Certification
  • Page 13 MI Clean School Bus Program Scrappage Statement
  • Page 14-15 MI Clean School Bus Program Service Level Agreement

Support and FAQs

Questions should be emailed to [email protected].

Check out the FAQ here.

Support Hours

Weekly office hours will be held by MDE and MAPT every Friday from 9:30- 10:30 AM ET to assist applicants with their questions. The ZOOM link for these office hours is HERE.

Webinars

September 17, 2024 Webinar: Michigan Clean Bus Energy Grant Program – Round 2

Join us for an informative webinar on the second round of the Michigan Clean Bus Energy Grant Program on Tuesday, September 17, at 12 p.m. ET! With the application window for Round 2 closing on October 12, 2024, this session is your chance to get up-to-date information and expert guidance on how to make the most of this valuable funding opportunity.

You’ll walk away from this webinar with:

  • a comprehensive understanding of the Michigan Clean Bus Energy Grant Program, including eligibility criteria, funding opportunities, and the application process;

  • knowledge of best practices and essential considerations for deploying electric school buses (ESBs) from utility industry experts;

  • practical advice on integrating these vehicles into your existing infrastructure;

  • and examples of success stories and key outcomes from Round 1 of the program, including a firsthand account from a school district that successfully put ESBs on the road.

Learn more about the challenges surrounding ESB deployment and how Michigan Clean Bus Energy Grant Program funding can help you overcome these challenges and experience all the benefits these vehicles have to offer.

June 12, 2024 Webinar: MDE/MAPT “Michigan’s 74(b) Clean Bus Energy Grant Overview”  (Password: @9Xy4*M2)

June 12th: MI Clean Bus Energy Grant Webinar slides

December 12, 2023 Webinar: MAPT/EPA “How Utilities Can Assist with Electrifying Your Fleet & Case Study Examples”

This past webinar recording from December 2023 (start at 27:00) highlights TCO and utility engagement (41:00) with school districts across Michigan. It was originally created to share information on the EPA Clean School Bus Program Rebates Round that closed in February 2024, but it will be helpful to understand what to expect from your utilities if you are considering an electric school bus. A list of utility contacts will be posted here shortly. We recommend contacting your school district’s utility account manager ASAP and inquire about options for fleet electrification.

Videos

Press Releases

Michigan opens $125 Million grant program for schools to purchase cleaner school buses.

View Press Release

Local School Districts Receive $30M from Michigan Department of Education for Clean School Buses

View Press Release

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