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EPA Awards $10.5M to 40 States to Replace Diesel School Buses; NJ, $500,000

EPA Awards $500,000 to Clean Up 25 School Buses in New Jersey

First DERA Funds for Alt-Fuel and Electric Buses Offered

NEW YORK (April 20, 2021) – Today, the U.S. Environmental Protection Agency (EPA) awarded approximately $10.5 million to replace 473 older diesel school buses nationwide. The funds are going to 137 school bus fleets in 40 states, each of which will receive rebates through EPA's Diesel Emissions Reduction Act (DERA) funding. The new buses will reduce pollutants that are linked to asthma and lung damage, better-protecting health and air quality in communities across the country. In New Jersey, EPA is providing $500,000 to five entities to replace 25 buses across the state. 6a00d8341bf7d953ef01a511f0d7fc970c-320wi

"The rebates provide children with a safe and healthy way to get to school by upgrading older diesel engines in our nation’s school buses," said EPA Administrator Michael S. Regan. “Through the Diesel Emissions Reduction Act, EPA is equipping local school districts with cleaner-running buses, helping them along the route to healthier kids and communities.”

The 2020 Rebates are the first year in which EPA is offering additional funds for alt-fuel and electric bus replacements. Applicants scrapping and replacing diesel buses with engine model years 2006 and older will receive rebates between $20,000 and $65,000 per bus, depending on the fuel type of the replacement bus.

The funding selectees in New Jersey are:

  • Berlin Township Board of Education – $20,000 to replace one bus
  • First Student in Berlin – $200,000 to replace 10 buses
  • Irvin Raphael, Inc., in East Brunswick – $40,000 to replace two buses
  • Toms River Regional Schools – $40,000 to replace two buses
  • Yellow Bus LLC in Bellmawr – $200,000 to replace 10 buses

EPA has implemented standards to make newer diesel engines more than 90 percent cleaner, but many older diesel school buses are still operating. These older diesel engines emit large amounts of pollutants such as nitrogen oxides and particulate matter, which are linked to instances of aggravated asthma, and other health effects or illnesses that can lead to missed days of work or school. 

Since 2008, the DERA program has funded more than 1,300 projects across the country, reducing diesel emissions in more than 70,000 engines. A comprehensive list of the 2020 DERA School Bus Rebate recipients can be found at

For more information about the DERA program, visit