erwise disposing of an engine described in sub-
paragraph (A) for use in another motor vehicle 
in any location. 
(8) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(9) STATE.—The term ‘‘State’’ means— 
(A) each of the several States of the 
United States; 
(B) the District of Columbia; and 
(C) the Commonwealth of Puerto Rico. 
(b) CLEAN SCHOOL BUS GRANT PROGRAM.— 
(1) ESTABLISHMENT.—The Secretary shall es-
tablish in the Office of Energy Efficiency and Re-
newable Energy of the Department of Energy a pro-
gram, to be known as the ‘‘Clean School Bus Grant 
Program’’, for awarding grants on a competitive 
basis to eligible entities for the replacement of cer-
tain existing school buses. 
(2) APPLICATIONS.—To be eligible to receive a 
grant under the program, an eligible entity shall 
submit to the Secretary an application at such time, 
in such manner, and containing such information as 
the Secretary shall require, including— 
(A) a certification that no public work or 
service normally performed by a public em-
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ployee will be privatized or subcontracted in 
carrying out a project under the grant; and 
(B) to ensure a fair assessment of total 
workforce impact, a detailed accounting of the 
workforce of the eligible entity at the time of 
application, including— 
(i) the number of employees, orga-
nized by salary; 
(ii) the bargaining unit status of each 
employee; 
(iii) the full- or part-time status of 
each employee; and 
(iv) the job title of each employee. 
(3) PRIORITY OF GRANT APPLICATIONS.— 
(A) IN
GENERAL.—The Secretary shall 
give priority to eligible entities— 
(i) that have significant aging, ineffi-
cient, or high emission bus fleets that need 
improvement; 
(ii)(I) that serve a high percentage of 
students from low-income families, as de-
termined by the Secretary using data from 
the Small Area Income and Poverty Esti-
mates Program of the Bureau of the Cen-
sus; 
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(II) with a participating local edu-
cational agency designated with a school 
district locale code of 41, 42, or 43, as de-
termined by the National Center for Edu-
cation Statistics in consultation with the 
Bureau of the Census; or 
(iii) that propose projects that will 
most reduce emissions, as described in sub-
paragraph (B). 
(B) MOST EMISSIONS-REDUCING PROJECTS 
DESCRIBED.—The projects that will most re-
duce emissions referred to in subparagraph 
(A)(iii) are projects that— 
(i) will replace the most polluting die-
sel school buses with the cleanest running 
electric school buses, as indicated by— 
(I) the age of the school buses to 
be replaced; 
(II) the emissions control tech-
nologies on the school buses to be re-
placed; 
(III) the annual vehicle miles 
traveled by the school buses to be re-
placed; 
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(IV) the source of electricity or 
hydrogen used to power the electric 
school buses; and 
(V) any other factors the Sec-
retary determines to be relevant; or 
(ii) will complement the use of grant 
funds through other activities that— 
(I) will enable broader deploy-
ment of electric vehicles, such as se-
curing additional sources of funding 
through public-private partnerships 
with utilities, grants from other enti-
ties, or issuance of school bonds; or 
(II) will achieve further reduc-
tions in emissions, such as installing 
solar panels as part of recharging in-
frastructure to power electric school 
buses purchased with grant funds. 
(C) ADDITIONAL CRITERIA FOR CONSIDER-
ATION.—With respect to eligible entities seeking 
a grant to purchase electric school buses under 
the program, the Secretary may consider, in ad-
dition to the information included in the appli-
cation submitted under paragraph (2)— 
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(i) whether the grant will benefit stu-
dents in a region that is in nonattainment 
of a national ambient air quality standard 
under section 109 of the Clean Air Act (42 
U.S.C. 7409); 
(ii) whether the eligible entity, or 
whether the local educational agency that 
would be served by the eligible entity, has 
taken other action to reduce emissions dur-
ing the transportation of students, such as 
instituting a no-idling policy; and 
(iii) whether the eligible entity serves 
geographic locations with potential barriers 
to the use of an electric school bus, includ-
ing— 
(I) significant weather events; 
and 
(II) distance challenges and limi-
tations. 
(4) USE OF SCHOOL BUS FLEET.—Each electric 
school bus acquired or leased with funds provided 
under the program— 
(A) shall be operated as part of the school 
bus fleet for which the grant was made for not 
less than 5 years; 
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(B) shall be maintained, operated, and 
charged 
according 
to 
manufacturer 
rec-
ommendations or State requirements; and 
(C) may not be manufactured or retro-
fitted with, or otherwise have installed, a power 
unit or other technology that creates air pollu-
tion within the school bus, such as an unvented 
diesel passenger heater. 
(5) GRANT AWARDS.— 
(A) IN GENERAL.—The Secretary may use 
funds made available to carry out the pro-
gram— 
(i) to award grants for— 
(I) the replacement of existing 
diesel school bus fleets with electric 
school buses; 
(II) the implementation of re-
charging infrastructure or other infra-
structure, including renewable energy 
generation infrastructure, needed to 
charge or maintain electric school 
buses; 
(III) workforce development and 
training, to support the maintenance, 
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charging, and operations of electric 
school buses; and 
(IV) planning and technical ac-
tivities to support the adoption and 
implementation 
of 
electric 
school 
buses; and 
(ii) to develop resources to inform, en-
courage, and support eligible entities in ap-
plying for and fulfilling the requirements 
of grants awarded under the program, in-
cluding materials to support the workforce 
development and training described in 
clause (i)(III) and the planning and tech-
nical activities described in clause (i)(IV). 
(B) REQUIREMENTS.—In order to receive 
a grant under the program, the Secretary 
shall— 
(i) require that grant recipients— 
(I) replace diesel school buses 
with electric school buses; 
(II)(aa) not later than 1 year 
after receiving the electric school bus 
purchased using a grant under the 
program, scrap the diesel engine of 
the school bus being replaced; or 
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(bb) receive a waiver under para-
graph (6); 
(III) do not, as a result of receiv-
ing the grant— 
(aa) lay off, transfer, or de-
mote any current employee; or 
(bb) reduce the salary or 
benefits of any current employee 
or worsen the conditions of work 
of any current employee; and 
(IV) provide current employees 
with training to effectively operate, 
maintain, or otherwise adapt to new 
technologies relating to electric school 
buses; and 
(ii) permit grant recipients to receive 
and retain any funds or benefits received 
from— 
(I) scrapping a diesel engine; 
(II) transferring or repurposing a 
diesel school bus as authorized under 
a waiver under paragraph (6); and 
(III) the resale or reuse of other 
parts of a school bus replaced using 
grant funds. 
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(C) GRANT AMOUNTS.— 
(i) MAXIMUM AMOUNT.—For each eli-
gible entity that submits an application 
under 
paragraph 
(2), 
the 
maximum 
amount of a grant under the program is 
$2,000,000. 
(ii) AMOUNTS
FOR
PURCHASE
OF 
ELECTRIC SCHOOL BUSES.— 
(I) IN GENERAL.—For any grant 
under the program, the amount of 
funds awarded for the purchase of an 
electric school bus shall not exceed 
110 percent of the amount equal to 
the difference between— 
(aa) the cost of an electric 
school bus; and 
(bb) the cost of a diesel 
school bus. 
(II) DETERMINATION
OF
COST 
OF
SCHOOL
BUSES.—In determining 
the amount of funds under subclause 
(I), the Secretary may determine the 
cost of a school bus for the purpose of 
calculating the marginal cost under 
that subclause through— 
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(aa) a competitive solicita-
tion process for the manufacture 
of the school bus; 
(bb) a cooperative purchase 
agreement permitted by the laws 
of the State in which the grant 
recipient is located; or 
(cc) another method that the 
Secretary determines to be ap-
propriate. 
(iii) AMOUNTS FOR SUPPORTING AC-
TIVITIES.—For any grant under the pro-
gram, the amount of funds awarded for 
the purposes described in subclauses (II) 
through (IV) of subparagraph (A)(i), or 
other purposes related to those subclauses, 
as determined by the Secretary, shall not 
exceed $600,000. 
(D) BUY AMERICA.— 
(i) IN GENERAL.—Except as provided 
in clause (ii), any electric school bus pur-
chased using funds awarded under the pro-
gram shall comply with the requirements 
described in section 5323(j) of title 49, 
United States Code. 
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(ii) EXCEPTIONS.— 
(I) WAIVER.—The Secretary may 
provide any waiver to the require-
ments described in clause (i) in the 
same manner and to the same extent 
as the Secretary of Transportation 
may provide a waiver under section 
5323(j)(2) of title 49, United States 
Code. 
(II) PERCENTAGE
OF
COMPO-
NENTS
AND
SUBCOMPONENTS.—The 
Secretary may grant a waiver in ac-
cordance with section 5323(j)(2)(C) of 
title 49, United States Code, when a 
grant recipient procures an electric 
school bus using funds awarded under 
the program for which the cost of 
components and subcomponents pro-
duced in the United States, for fiscal 
year 2022 and each fiscal year there-
after, is more than 70 percent of the 
cost of all components of the school 
bus. 
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(6) WAIVER.—On request of a grant recipient, 
the Secretary may grant a waiver under paragraph 
(5)(B)(i)(II)(bb) to authorize a grant recipient— 
(A) to transfer a diesel school bus replaced 
using grant funds under the program under an 
agreement— 
(i) between— 
(I) the grant recipient; and 
(II) an entity described in sub-
section (a)(2) that serves an area that 
is in attainment of national ambient 
air quality standards under the Clean 
Air Act (42 U.S.C. 7401 et seq.); 
(ii) that provides that— 
(I) not later than 1 year after the 
transfer subject to the agreement, the 
entity receiving a school bus from the 
grant recipient will scrap a number of 
diesel engines of school buses that is 
equal to the number of school buses 
being received; and 
(II) any diesel engines described 
in subclause (I) are older and more 
polluting than the diesel engines in 
the school buses being received; and 
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