Washington, D.C. — House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA), Subcommittee on Oversight and Investigations Chair Morgan Griffith (R-VA), and Subcommittee on Environment, Manufacturing, & Critical Materials Chair Buddy Carter (R-GA) wrote to Environmental Protection Agency (EPA) Administrator Michael Regan regarding the agency’s Clean School Bus Program.

KEY EXCERPT: 

“Alarming information about this program continues to emerge. In particular, the EPA’s Office of the Inspector General (OIG) has flagged serious shortcomings in the program that create significant vulnerabilities to waste, fraud, and abuse. The EPA’s own reporting on the program reveals that numerous award recipients encountered difficulty utilizing the funding they were awarded. Additionally, the EPA continues to administer the program in a manner that favors the use of electric school buses over other types of buses that are eligible for funding under the program.” 

CHALLENGES TO IMPLEMENT: 

• Of almost 400 selectees under the 2022 Clean School Bus Rebate program 46 selectees withdrew from the program. 
• The most common reasons provided for withdrawal were school boards voting against the projects for reasons including difficulties coordinating with electric utilities, potentially lengthy and costly electric infrastructure upgrades required to install electric vehicle supply equipment, and hesitancy about maintenance and range issues associated with electric buses. 
• The OIG concluded in a December 2023 audit that “the agency may be unable to effectively manage and achieve the program mission unless local utility companies can meet increasing power and supply demands for electric buses.” 
• The OIG noted that establishing charging stations and connecting them to power lines could take approximately twelve to twenty-four months.  
• Stakeholders reported that infrastructure to support 25 buses or more demands a more complex electrical setup, which can take a year to construct. 

POTENTIAL FOR WASTE, FRAUD, AND ABUSE: 

• In December 2023, the OIG issued a Management Implication Report that highlighted serious problems with the Clean School Bus Program.  
• The OIG “identified concerns regarding the EPA’s lack of robust verification mechanisms within the Clean School Bus rebate and grant application process, which led to third parties submitting applications on behalf of unwitting school districts, applicants not being forthright or transparent, entities self-certifying applications without having corroborating supporting documentation, and entities being awarded funds and violating program requirements.” 
• The OIG further stated, “Our initial investigation of its protocols found that the Clean School Bus Program is rife with potentially inaccurate information” and that “the EPA uses few mechanisms to verify the accuracy of application contents and relies on the applicant’s self-certification of all aspects of the application,” including the applicant’s eligibility for the program, satisfaction of vehicle-use requirements, and the identity of the school district the replacement buses funded by the program will serve. 
• The OIG also found that an administrative entity with zero students was selected to receive a rebate, despite it seeking funding for buses that were ineligible for the program.  
• Some recipients selected to receive rebates under the 2022 Clean School Bus Rebate program later declined the funding.  
• These withdrawals accounted for $38 million of awards, which the OIG stated lengthened program timetables and created confusion. 

EPA PICKING WINNERS AND LOSERS: 

• The Infrastructure Investment and Jobs Act (IIJA) directed the EPA to award grants, rebates, and contracts to replace existing school buses with both zero-emission buses and clean school buses. 
• The IIJA defines clean school buses as school buses that reduce emissions and operate partly or entirely using an alternative fuel, or zero-emission buses.  
• The Committee has previously voiced concerns about the EPA's bias towards electric buses while ignoring the benefits of other clean school buses, concerns that persist today.  
• According to information provided by the agency, “As of January 2024, the EPA has awarded approximately $1.84 billion to fund 5,103 clean school buses—96 percent of which are electric—and related charging infrastructure at 642 school districts in most states and territories, and at schools operated by federally recognized Tribes.”  
• Under the 2023 Clean School Bus Rebates program, the EPA continues to offer maximum awards for fully electric school buses that are several times larger than the maximum award amount for other types of clean school buses. 
• Additionally, under the Clean School Bus program, the EPA continues to fund charging infrastructure for electric vehicles but not propane or compressed natural gas fueling infrastructure. 
• Under the 2022 Clean School Bus Rebate program, the maximum bus funding amount for a class 7+ zero-emission bus was $375,000, and the maximum amount for a propane class 7+ propane bus was $30,000. 
• The EPA reported, “The majority of awarded electric school buses cost at or near $375,000, while many awarded propane buses cost around $150,000.” 
• In other words, the maximum rebate amount seemingly covered the entire cost of an electric bus but covered only a fraction of a propane bus. 

CLICK HERE to read the letter.