Notice2026-03351
Development of Guidance for Alternative Fuel Vehicles and Fueling Infrastructure Deployment Under the Clean School Bus Funding Programs
Primary source
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Published
February 20, 2026
Issuing agencies
Environmental Protection Agency
Abstract
The U.S. Environmental Protection Agency (EPA) is planning a new funding opportunity under the Clean School Bus (CSB) Program to encourage broad participation and fleet turnover by providing school districts with greater choice in school bus technology while strengthening oversight and compliance. To support the development of this new funding opportunity, the EPA invites public comments to inform the Agency's understanding of the availability of alternative fuels and associated technologies in the medium- and heavy-duty school bus sector. The EPA is committed to ensuring that all technologies covered by the definition of "clean school bus" in 42 U.S.C. 16091(a)(3) are included in a new funding opportunity later this year. In addition to seeking information on available alternative fuels and buses for the upcoming funding opportunity, the EPA is also seeking information from the public on additional ways the Agency can further safeguard taxpayer dollars. The EPA conducted a programmatic review of the previous CSB funding rounds and identified areas for enhanced controls. The EPA is interested in identifying additional ways to prevent waste, fraud, and abuse within the CSB Program and is requesting comment to ensure that the Agency has the most comprehensive information available regarding robust oversight and compliance.
Full Text
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[Federal Register Volume 91, Number 34 (Friday, February 20, 2026)]
[Notices]
[Pages 8234-8239]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-03351]
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ENVIRONMENTAL PROTECTION AGENCY
[EPA-HQ-OAR-2025-1806; FRL-12979-01-OAR]
Development of Guidance for Alternative Fuel Vehicles and Fueling
Infrastructure Deployment Under the Clean School Bus Funding Programs
AGENCY: Environmental Protection Agency (EPA).
ACTION: Notice; request for information (RFI).
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SUMMARY: The U.S. Environmental Protection Agency (EPA) is planning a
new funding opportunity under the Clean School Bus (CSB) Program to
encourage broad participation and fleet turnover by providing school
districts with greater choice in school bus technology while
strengthening oversight and compliance. To support the development of
this new funding opportunity, the EPA invites public comments to inform
the Agency's understanding of the availability of alternative fuels and
associated technologies in the medium- and heavy-duty school bus
sector. The EPA is committed to ensuring that all technologies covered
by the definition of ``clean school bus'' in 42 U.S.C. 16091(a)(3) are
included in a new funding opportunity later this year. In addition to
seeking information on available alternative fuels and buses for the
upcoming funding opportunity, the EPA is also seeking information from
the public on additional ways the Agency can further safeguard taxpayer
dollars. The EPA conducted a programmatic review of the previous CSB
funding rounds and identified areas for enhanced controls. The EPA is
interested in identifying additional ways to prevent waste, fraud, and
abuse within the CSB Program and is requesting comment to ensure that
the Agency has the most comprehensive information available regarding
robust oversight and compliance.
DATES: Comments must be received on or before April 6, 2026. The EPA
will host an informational webinar during which participants may also
submit comments and questions. Details on the webinar, including the
date and registration info, will be posted on the CSB website at
<a href="http://www.epa.gov/cleanschoolbus">www.epa.gov/cleanschoolbus</a>.
ADDRESSES: You may submit your comments, identified by Docket ID No.
EPA-HQ-OAR-2025-1806, by any of the following methods:
<bullet> Federal eRulemaking Portal: Go to <a href="https://www.regulations.gov">https://www.regulations.gov</a> and follow the online instructions for submitting
comments (preferred method);
<bullet> Mail: U.S. Environmental Protection Agency, EPA Docket
Center, OAR Docket ID No. EPA-HQ-OAR-2025-1806, Mail Code 28221T, 1200
Pennsylvania Avenue NW, Washington, DC 20460;
<bullet> Hand Delivery or Courier: EPA Docket Center, WJC West
Building, Room 3334, 1301 Constitution Avenue NW, Washington, DC 20004.
The Docket Center's hours of operation are 8:30 a.m.-4:30 p.m. EST.,
Monday-Friday, except Federal holidays.
Instructions: All submissions received must include the Docket ID
No. for this notice. Comments received may be posted without change to
<a href="https://www.regulations.gov">https://www.regulations.gov</a>, including any personal information
provided.
FOR FURTHER INFORMATION CONTACT: For information about this RFI,
contact Alexander Paulos, Office of Transportation and Air Quality, via
email at <a href="/cdn-cgi/l/email-protection#3e7b6e7f137d6d7c136c78777e5b4e5f10595148"><span class="__cf_email__" data-cfemail="e8adb8a9c5abbbaac5baaea1a88d9889c68f879e">[email protected]</span></a> or via phone at 202-564-9674. U.S. EPA,
Room: WJC-North 5358D, Mail Code: 6406A, 1200 Pennsylvania Avenue NW,
Washington, DC 20460.
SUPPLEMENTARY INFORMATION: In this request for information (RFI), the
EPA provides a brief background on the CSB Program and describes five
areas of interest: (1) Alternative Fuel School Buses; (2) Alternative
Fuels for Use in School Buses; (3) Fueling Infrastructure for
Alternative Fuels; (4) School Bus Industry Supply Chain and Purchasing
Practices; and (5) Oversight and Fraud Prevention.
The EPA is interested in comments detailing: (1) the availability,
market price, and performance of alternative fuel school buses that
operate entirely or in part on liquified natural gas (LNG), compressed
natural gas (CNG), hydrogen, propane, or biofuels; (2) the
availability, market price, and performance of LNG, CNG, hydrogen,
propane, or biofuels with respect to school buses; (3) the
availability, market price, and performance of associated alternative
fueling infrastructure; (4) the need for school bus fleets to have
dedicated fueling infrastructure when operating buses in their fleet on
alternative fuels in the near term (i.e., within 1-5 years); and (5)
ways that the EPA can enhance and expand grant
[[Page 8235]]
implementation tools and improve oversight methods.
The EPA also invites comment on other aspects of the school bus
industry, including supply chain timelines for alternative fuel school
buses and standard purchasing practices for school bus orders, such as
down payment expectations. The EPA seeks suggestions to bolster
oversight across the CSB Program and to protect Federal investment and
responsibly manage awards.
This RFI then requests comment on each of these areas of interest.
This RFI also includes guidance on submitting comments, procedures for
submitting Confidential Business Information (CBI), and where to find
additional information.
In this RFI, the EPA is not soliciting similar information on
technology or fueling infrastructure for zero-emission buses as the
Agency already has sufficient information on the availability and
performance of zero-emission school buses.
Preamble Acronyms and Abbreviations
Throughout this preamble, the use of ``we,'' ``us,'' or ``our'' is
intended to refer to the EPA. We use multiple acronyms and terms in
this RFI. We use multiple acronyms and terms in this RFI. While this
list may not be exhaustive, to ease the reading of this RFI and for
reference purposes, the EPA defines the following terms and acronyms
here:
B20 Biodiesel 20 percent
CBI Confidential Business Information
CNG Compressed Natural Gas
CSB Clean School Bus
E85 Ethanol 85 percent
EPA Environmental Protection Agency
FOIA Freedom of Information Act
GVWR Gross Vehicle Weight Rating
IIJA Infrastructure Investment and Jobs Act
LNG Liquified Natural Gas
RFI Request for Information
Table of Contents
I. Responding to This RFI
II. Background
A. Alternative Fuel School Buses
B. Alternative Fuels
C. Fueling Infrastructure
D. School Bus Industry Supply Chain and Purchasing Practices
E. Oversight and Fraud Prevention
III. Request for Comments and Information
A. Alternative Fuel School Buses
B. Alternative Fuels for Use in School Buses
C. Fueling Infrastructure for Alternative Fuels
D. School Bus Industry Supply Chain and Purchasing Practices
E. Oversight and Fraud Prevention
I. Responding to This RFI
Please indicate in your written comments the topic number(s) you
are commenting on and provide specific examples or information to
support your comments where possible. Please follow the instructions on
<a href="https://www.regulations.gov">https://www.regulations.gov</a> and the docket website for submitting
comments, but do not submit any information electronically that you
consider to be CBI or other information whose disclosure is restricted
by statute as there are separate instructions below for submitting CBI.
Once submitted, comments cannot be edited or removed from the docket.
You do not need to address every topic and should focus on those topics
where you have relevant expertise or experience. The EPA may publish
any comment received to its public docket or to <a href="https://www.regulations.gov">https://www.regulations.gov</a> without change, including any personal information
provided. Multimedia submissions (e.g., audio, video) must be
accompanied by a written comment. The written comment is considered the
official comment and should include discussion of all points you wish
to make. In all cases, to the extent possible, please cite any public
data related to or that support your responses. If data are available,
but non-public, describe such data to the extent permissible. The EPA
will generally not consider comments or comment contents located
outside of the primary submission (i.e., on the web, cloud, or other
file sharing system).
Confidential Business Information
CBI is commercial or financial information that is both customarily
and actually treated as private by its owner. Under the Freedom of
Information Act (FOIA) (5 U.S.C. 552), CBI is exempt from public
disclosure. If your comments responsive to this RFI contain commercial
or financial information that is customarily treated as private, that
you actually treat as private, and that is relevant or responsive to
this RFI, it is important that you clearly designate the submitted
comments as CBI. Pursuant to 40 CFR part 2, you may ask the EPA to give
confidential treatment to information you give to the Agency by taking
the following steps: (1) mark each page of the original document
submission containing CBI as ``Confidential''; (2) send the EPA, along
with the original document, a second copy of the original document with
the CBI deleted; and (3) explain why the information you are submitting
is CBI. Unless you are notified otherwise, the EPA will treat such
marked submissions as confidential under the FOIA, and they will not be
placed in the public docket of this RFI. Submissions containing CBI
should be sent to the individual listed in the FOR FURTHER INFORMATION
CONTACT section. Any comment submissions that the EPA receives that are
not designated as CBI will be placed in the public docket for this
matter.
II. Background
The Infrastructure Investment and Jobs Act (IIJA) amended the
Energy Policy Act at 42 U.S.C. 16091 to authorize the clean school bus
(CSB) program. The IIJA directs the EPA to create the CSB Program and
fund projects totaling $5 billion over 5 years for the replacement of
existing school buses with clean school buses or zero-emission school
buses, as well as fueling infrastructure. The CSB Program prioritizes
providing school districts with resources to replace as much of their
school bus fleet as possible through the duration of the CSB Program.
Maximizing fleet-turnover requires a focus on affordability and
technology choice, including setting an appropriate EPA funding level
and ensuring school districts can choose the type of bus that best
suits their needs. Of the amounts appropriated to the EPA for CSB
awards in a fiscal year, the IIJA directs the EPA to use fifty percent
to replace existing buses with clean and zero-emission buses and the
other fifty percent to replace existing buses with zero-emission buses
(42 U.S.C. 16091(b)(2)).
To date, nearly $3 billion has been awarded through one competitive
grant opportunity and two rebate opportunities. Across these three
opportunities, the EPA expects that recipients will replace nearly
8,500 school buses with propane-fueled, and battery-electric school
buses. School buses that were fueled by biofuels, compress natural gas
(CNG), liquified natural gas (LNG), and hydrogen were not awarded in
prior funding rounds. The result of the awards was that battery-
electric accounted for over 90 percent of these new vehicles. School
districts applied directly for funding or partnered with third parties
such as student transportation providers, bus dealerships, and
manufacturers.
The EPA observed that CSB projects where all partners--including
school boards, transportation service providers, bus manufacturers and
dealers, utilities, and infrastructure providers--are engaged prior to
the application were most successful. The EPA highly encourages
applicants to consult with potential partners to discuss expectations,
costs, and timelines in advance of the application. Further, the
bankruptcy of Lion Electric seriously impacted several projects.
Applicants should exercise due diligence when
[[Page 8236]]
selecting partners for their applications. School districts should also
consider if the school district is best suited to be the direct
applicant to ensure maximum flexibility in their vendors.
Alternatively, some school districts may prefer a third party manages
the application and project, and these districts may be better served
as a beneficiary to a third-party application.
Finally, the statute allows for-profit entities to apply directly
for CSB funds. Based on program implementation experience to date with
this relatively unique structure, the EPA and for-profit funding
recipients need to improve internal controls and financial management
systems. The EPA is developing additional requirements applicable to
for-profit recipients in the next funding round and seeks input on how
to draft robust program guidance and requirements to ensure responsible
grant management.
For more information on the CSB Program, including eligibility for
participants as specified in the statute, please refer to <a href="https://www.epa.gov/cleanschoolbus">https://www.epa.gov/cleanschoolbus</a>.
A. Alternative Fuel School Buses
The IIJA allows the EPA to fund the replacement of existing school
buses with clean school buses. The IIJA defines ``clean school bus'' as
a school bus that that the Administrator certifies reduces emissions
and operates entirely or in part using an ``alternative fuel'' or a
``zero-emission school bus.'' 42 U.S.C. 16091(a)(3).
The IIJA defines ``alternative fuel'' to mean LNG, CNG, hydrogen,
propane or biofuels. 42 U.S.C. 16091(a)(2). Prior CSB-funding rounds
did not include biofuels, LNG, or hydrogen. In the next funding round,
the EPA plans to expand the available types of school bus technology to
provide school districts with all alternative fuels identified under
the law and to allow for the maximum number of affordable bus choices
to fit school districts' specific needs. To gain an understanding of
the interest in and feasibility of these additional technologies, the
EPA is seeking feedback from stakeholders on the availability of school
bus technology and associated infrastructure needs for these fuel
types, as well as any new information on propane or CNG school bus
technology and associated infrastructure.
B. Alternative Fuels
As noted above, the EPA may provide awards toward the purchase of
school buses that the Administrator certifies reduce emissions and are
operated entirely or in part using biofuels, CNG, LNG, propane, or
hydrogen (i.e., alternative fuels). The EPA would like to better
understand the expected emissions performance of school buses operating
on the range of alternative fuels allowed by the law as the market
availability and distribution practices for these fuels. Specifically,
the EPA seeks information on the availability, blends, pricing,
performance, and other considerations of the defined alternative fuels
for use in school buses. Through responses to the questions listed
below, the EPA would like to better understand (1) the market
availability and transport logistics of alternative fuels for use in
school bus applications, (2) the availability and common practices of
fuel feedstock and blend documentation for retail purchases of
alternative fuels in both onsite fueling systems, and through offsite
arrangements for fueling the buses of public and private student
transportation providers, and (3) the appropriate fuel and technology
comparisons between clean school buses and the existing buses they will
replace for the purpose of certifying emissions reductions, including
how to account for emissions from bus operation using a blended
alternative fuel or an alternative fuel only for a portion of service.
C. Fueling Infrastructure
Through the CSB Program, the EPA may fund fueling infrastructure as
an eligible expense in supporting school bus projects. The EPA seeks
information on the availability, pricing, performance, and other
considerations of alternative fueling infrastructure systems and
components. Regarding fueling infrastructure, this RFI is intended to
help the EPA better understand (1) the market availability of
domestically manufactured alternative fueling infrastructure and (2)
common fueling practices for school bus fleets for both onsite fueling
systems and offsite arrangements.
D. School Bus Industry Supply Chain and Purchasing Practices
The EPA recognizes that supply-chain related factors impact project
timelines from ordering to putting new buses into service. The EPA
seeks information to better understand these factors, particularly
elements that extend the period between grant drawdowns and invoiced
vehicle and equipment procurement by grantees and sub-grantees. The EPA
is also interested in information regarding opportunities that promote
cost effectiveness and fleet turnover, such as standardization of
purchasing requirements across geographies or Federal cost-share
levels, while accommodating local and State needs to reduce costs,
expedite production, and streamline service and training.
E. Oversight and Fraud Prevention
The EPA is committed to the responsible management of CSB funding,
which includes providing clear information and tools for funding
recipients to promote compliance with grant requirements and conducting
oversight to ensure such compliance and to prevent waste, fraud, and
abuse of taxpayer dollars. The CSB Program office has continually
engaged with the EPA Office of Inspector General and implemented
recommendations included in their oversight reports. The EPA has also
implemented adjustments to each funding round as the Agency continually
improves program management based on prior funding rounds. Input on
effective oversight measures is always welcomed by the EPA, including
in response to this RFI.
The EPA conducted a comprehensive internal review of the CSB
Program over the past year to assess financial management practices,
compliance performance, and internal control structures. The EPA has
significant concerns after discovering several weaknesses and
vulnerabilities. These include inconsistent documentation and
recordkeeping among some awardees, instances of incomplete adherence to
reporting and award conditions, improper or premature drawdowns of
funds, and insufficient internal by certain awardees, including some
for-profit recipients. The EPA also identified areas where verification
processes related to vehicle scrappage, deployment, and operational
compliance could be strengthened.
The EPA takes these concerns seriously. Protecting taxpayer
resources is a core responsibility of the Agency. In light of these
concerns, the EPA is evaluating and intends to incorporate strengthened
oversight mechanisms into any future funding rounds to reduce risk,
improve transparency, and ensure funds are used strictly as authorized.
The Agency is considering pre-award risk assessments and financial
capability reviews for certain applicants; stronger documentation
requirements associated with drawdowns and reimbursements; clearer and
more enforceable award terms and conditions; improved verification
procedures for scrappage and operational compliance; and expanded post-
award monitoring, including targeted compliance reviews where
appropriate. The Agency is also evaluating the appropriateness of
[[Page 8237]]
additional safeguards and conditions for for-profit entities.
The EPA recognizes the importance of balancing robust oversight
with practical implementation. The Agency seeks input on oversight
approaches that can strengthen accountability while minimizing
unnecessary administrative burden for school districts and fleet
operators acting in good faith. The specific questions are listed in
section III-E of this RFI.
III. Request for Comments and Information
In this section, the EPA requests responses to specific topics.
Please indicate in your written comments the topic number(s) you are
commenting on and provide specific examples or information to
illustrate your comments where possible.
A. Alternative Fuel School Buses
The EPA requests information on current and expected near-term
(i.e., within 1-5 years) availability of alternative fuel Type A school
buses (typically Class 3-6 vehicles, gross vehicle weight rating (GVWR)
10,001-26,000 pounds) and Types C and D school buses (typically Class
7-8 vehicles, GVWR >26,000 pounds). The EPA also requests responses to
the questions regarding the current state of alternative fuel school
buses, including vehicle availability, performance, pricing,
opportunities to streamline manufacturing processes, and other
practical considerations.
1. Using the following categories as a guide, please identify types
of vehicles that you are providing information about in response to
this RFI. For each item you identify, please provide a description and
specify the type of fuel (i.e., biodiesel, hydrogen, propane, CNG, LNG,
E85 flex fuel, or other biofuel technologies).
i. Type A school buses.
ii. Type C school buses.
iii. Type D school buses.
2. For each of the vehicle types you identified in response to
Topic A.1, please:
i. Describe the current and the expected near-term (i.e., within 1-
5 years) availability of the vehicles based on sales volumes, number
and size of manufacturers, and other key industry factors.
ii. Provide information on the near-term demand outlook for the
vehicles. For entities that are eligible for funding, please describe
how many and what types of alternative fuel vehicles you would
anticipate purchasing in the near-term.
iii. Provide information regarding whether the current and expected
near-term manufacturing capacity would be adequate to meet the expected
market demand. Please specify any factors that are helping or impeding
the industry from meeting the expected demand, both currently and in
the near-term.
iv. Provide information on the current and expected near-term
average customer delivery time.
v. Specify the current market price (or price range) of the
vehicles and what is included in that price.
vi. Provide information on the price outlook through calendar year
2026 and, where applicable, through the near-term (i.e., within 1-5
years). Please identify and describe any opportunities for reducing
prices.
vii. Provide information regarding supply chain constraints, local
permitting, safety requirements, and other factors that may affect
costs, invoicing timeframes, or project implementation timelines.
viii. Describe the expected service life and long-term (greater
than 5 years) operation and maintenance requirements of alternative
fuel school buses compared to those operating on conventional
petroleum-based liquid fuels.
ix. Provide information regarding the cost of maintenance and
operation of alternative fuel school buses. Please specify information
on related costs and identify any differences in these costs compared
to school buses that use conventional petroleum-based fuels. If
information specific to school buses is not available, then please
provide information relevant to similarly sized medium- and heavy-duty
vehicles.
x. Describe the expected performance and maintenance impacts on the
service life of alternative fuel vehicles in extreme weather conditions
or seasonal operation relative to vehicles operating on conventional
diesel or gasoline fuel. Include information on any differences in
efficiency, reliability, and operational characteristics or challenges
that may arise in cold or hot climates or related to fuel remaining in
vehicle tanks for extended times such as summer or holiday breaks, and
steps taken to address any such differences.
xi. Provide information on school bus telematics systems,
specifically on systems which monitor fuel use and parameters,
including software and hardware system components, whether systems are
proprietary or third-party platforms, data transmission frequency,
vehicle activity data (e.g., miles traveled) and geospatial
information, and potential applications of vehicle telematics to
monitor fuel usage, track real-time fuel consumption, analyze fuel
efficiency, and identify fuel blends through advanced sensors.
B. Alternative Fuels for Use in School Buses
The EPA requests information on current and expected near-term
(i.e., within 1-5 years) availability of specified alternative fuels
for use in school buses. The EPA also requests responses to the
questions regarding the current and near-term state of alternative
fuels, including fuel availability, blends, pricing, supply
arrangements, fueling practices, and documentation.
1. Using the following categories as a guide, please identify types
of fuels (i.e., biodiesel, renewable diesel, E85 flex fuel, CNG, LNG,
propane, or other biofuel), including information on blends and fuel
feedstocks, as well as applicable fuel supply arrangements, for the
fuels that you are providing information about in response to this RFI.
i. Alternative fuels for school buses with onsite fleet fueling.
ii. Alternative fuels for school buses utilizing offsite private
fueling stations.
iii. Alternative fuels for school buses utilizing offsite public
fueling stations.
2. For each of the items you identified in response to Topic B.1,
please:
i. Describe the current and the expected near-term (i.e., within 1-
5 years) availability of these alternative fuels based on sales
volumes, number and size of fuel suppliers and distributors, and other
key industry factors. Please specify any limitations of fuel
availability related to geographic conditions, order volume, seasons
and weather, or other factors.
ii. Provide information on the near-term demand outlook for these
alternative fuels. For entities that are eligible for funding, please
describe the volume and types of alternative fuels you anticipate
purchasing in the near-term.
iii. Provide information on fuel supplier arrangements, including
the frequency of fuel deliveries, volume of delivered fuels, common
fuel supply contract structures, and seasonal or operational variations
in fuel supply or fuel blend rates or properties.
iv. Where the alternative fuel may be used interchangeably with
conventional fuel (e.g., B20 or renewable diesel), please describe what
documentation is currently used in the marketplace that ensures the use
and purchase of the alternative fuel and how such dual operation is
documented (e.g., miles traveled, engine hours, or fuel usage).
Submissions of examples of receipts (if
[[Page 8238]]
applicable, CBI should be submitted separately per instructions in the
Confidential Business Information section) and proof of delivery
documents are encouraged.
v. Provide information about the appropriate baseline and current
fuels the EPA should consider for comparing emissions reductions of
buses using alternative fuels.
vi. Provide information on school bus fleet fueling practices for
each of the categories under Topic B.1, including any information
related to the impact of vehicle size, fuel type, geography, and type
of fleet operator (e.g., school district fleet, state government fleet,
private school transportation provider, etc.) on fueling strategies.
C. Fueling Infrastructure for Alternative Fuels
The EPA requests information on fueling infrastructure for vehicle
fleets that use alternative fuels. Specifically, the EPA requests
information on fueling system components, pricing, construction and
installation requirements, performance, domestic content, and other
practical considerations.
For each of the items you identified in response to Topic B.1,
please:
1. Describe how separate fueling infrastructure is necessary for
school bus fleets that adopt alternative fuels or expand the use of
alternative fuels. For fleets that currently have alternative fuel
buses and on-site fueling capabilities, at what fleet size might
additional alternative fuel storage or modifications to equipment be
necessary?
2. Describe the components of an onsite fleet fueling system.
Please include information on pricing and availability, as well as
factors that impact pricing and availability (e.g., system size,
geography, local regulations, etc.). Diagrams of fueling systems and
components are encouraged.
3. For each system listed in B.1, describe how an onsite fueling
system for an alternative fuel is different than a system for
conventional fuels.
4. For biodiesel, please describe how both weather conditions and
limited use of fuel during specific periods (e.g., during summer when
school buses are not driving normal routes or winter when lower
temperatures could affect fuel flow properties) may impact the use and
storage of the fuel, as well as any requirements to address separation,
filtering, or mixing.
5. Provide information on construction and installation of fueling
systems, including typical pricing, project timelines, and
requirements, such as permitting requirements and timeframes between
permit request and receipt.
6. Describe the expected service life and long-term operation and
maintenance requirements of these components.
7. Describe the original manufacturer's warranty of components.
Please include all applicable parameters, such as years or hours of
operation. Please specify fuel types and fuel blends that are covered
or omitted from manufacturer warranties.
8. Provide information regarding parts or equipment availability
constraints, local permitting, safety requirements, and other needs
that may affect costs, delivery timeframes, or installation time of
onsite fleet fueling systems.
9. Provide details on fueling or engine system components that can
track, measure, or report on fuel usage data, fuel type, and biofuel
blend information.
D. School Bus Industry Supply Chain and Purchasing Practices
The EPA is interested in better understanding aspects of CSB
project implementation timeframes, particularly those aspects that
could lengthen the time between grant funding drawdowns and invoiced
vehicle and equipment procurement by grantees and sub-grantees. The EPA
requests information on supply chain and purchasing practices, school
bus production and component ordering timelines (in days), as well as
standard purchasing practices, including down payment expectations for
school buses eligible under the CSB Program. The EPA also requests
comment on aspects of CSB Program design, including appropriate funding
levels, that promote cost effectiveness and provide incentives to apply
while preventing overpayment for specific technologies.
1. Provide information on supply chain practices specific to the
production timelines (in days) for zero-emission and alternative fuel
school buses, including how far in advance school bus manufacturers pay
for vehicle components.
2. Describe the standard purchasing processes for school buses,
including any down payment expectations.
3. Provide information on supply chain practices specific to the
production timelines (in days) for any charging or refueling
infrastructure to support school buses, including how far in advance
infrastructure manufacturers must pay for infrastructure components.
4. Provide information on potential opportunities to streamline
school bus purchasing practices to encourage lower bus prices,
including any opportunities related to standardization of bus
requirements across geographic areas.
5. The EPA also requests comment on aspects of program design to
promote cost effectiveness and fleet turnover while preventing
overpayment for specific technologies.
i. Please describe methods for setting government cost-share
funding levels for school bus replacement projects that could support
these goals.
ii. Please describe strategies to standardize school bus
procurement or school bus design specifications while accommodating
local and state bus specification needs. For example, strategies for
standardization that can reduce costs, expedite production, and
streamline service and training.
E. Oversight and Fraud Prevention
The EPA is committed to effective management of CSB funding, which
includes providing clear information and tools for funding recipients
to promote compliance with grant requirements and conducting oversight
to ensure such compliance and to prevent waste, fraud, and abuse of
taxpayer dollars. The EPA is also interested in improving oversight,
specifically for third-party, for-profit applicants, and welcomes
comment on how the Agency can strengthen oversight across the CSB
Program to protect Federal investment and responsibly manage awards.
1. Please describe business models, financing structures, or third-
party arrangements, including but not limited to for-profit entities
that may increase risk to project success and negative impacts on
partners (e.g., school districts) and the EPA.
2. Please describe what financial framework elements could be
examined by the EPA for determining eligibility and risk of for-profit
applicants, such as a review of financial statements to ensure sound
financial conditions.
3. Please describe objective risk assessment criteria that the EPA
could apply during pre-award review to evaluate financial stability,
operational capacity, prior Federal grant performance, and compliance
history.
4. Please describe financial control standards, audit readiness
procedures, and conflict of interest policies for-profit entities
should have in place prior to receiving a Federal award to ensure that
funds are only used for their intended purpose (i.e., grant award).
5. Please describe limitations for-profit entities should be
subject to in order to avoid conflicts of interest, self-dealing, and
other practices that are
[[Page 8239]]
prohibited by Federal grant regulations at 2 CFR 200.
6. Please describe verification tools or documentation applicants
could provide to verify appropriate bus usage and potential routes
before funds are disbursed. Please submit sample documentation if
available.
7. Please describe whether and how milestone-based payment
structures, reimbursement-only models, or phased disbursement
mechanisms tied to verified delivery could reduce risk and improve
accountability.
8. Please describe appropriate enforcement mechanisms, including
repayment obligations or clawback provisions, that the EPA should
consider in cases of nonperformance, noncompliance, or misuse of funds.
Aaron Szabo,
Assistant Administrator, Office of Air and Radiation.
[FR Doc. 2026-03351 Filed 2-19-26; 8:45 am]
BILLING CODE 6560-50-P
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</html>Indexed from Federal Register on February 20, 2026.
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