Lion Electric Congratulates EPA on Doubling Clean School Bus Rebate to Nearly $1 Billion
Lion Electric Company (NYSE: LEV) (TSX: LEV), a prominent figure in the production of all-electric medium and heavy-duty vehicles, extends its hearty congratulations to the U.S. Environmental Protection Agency (EPA) on the remarkable triumph of its Clean School Bus Program. The program has shown such resounding success that the EPA, in its subsequent round of funding, has decided to amplify the awarded amount to almost $1 billion, nearly twice that of its initial disbursement. This accomplishment mirrors the significant efforts and commitment made towards promoting eco-friendly transportation solutions for future generations.
Following the remarkable response to this year’s initial tranche of $500 million, for which the application period closed in August, EPA announced a substantial increase in the total funding awarded for this year, raising it to $965 million. The demand for this year’s first round of funding was overwhelming, with approximately 2,000 applications totaling nearly $4 billion, representing more than 12,000 buses. In addition, the funding pool for the fiscal year 2023 is set to expand by an additional $1 billion, further underlining the commitment to advancing eco-friendly transportation solutions.
“As a manufacturer of purpose-built 100% electric school buses, it is extremely encouraging to see the resounding success of this initial round of the EPA Clean School Bus Program. An oversubscription rate of nearly eight times the available $500 million proves that the school transportation industry is ready to move beyond polluting diesel school buses, for the improvement of the health of our students and communities,” said Marc Bedard, CEO – Founder of Lion Electric. “As the leader in all-electric school buses with over 600 buses on the road which he have been deploying since 2016, we are very excited to assist districts with the next round of funding, as we did with the first. Congratulations to the EPA on this great success!”
Notably, electric school buses have been the stars of the show in this year’s initial round of applications. They composed a staggering 90% of all applications for the Clean School Bus Program, underscoring the burgeoning demand in the market for all-electric school buses. This extraordinary interest testifies to Lion’s observation of a rising demand for environmentally-friendly school transportation options. The EPA will announce the awardees of this year’s applications in October 2022, a pivotal moment that is eagerly anticipated by all participants.
Lion’s all-electric school buses are eligible to receive significant funding, which can make a substantial impact on their affordability. For priority districts, each bus can receive up to $375,000 in funding. This generous amount can cover up to 100% of the cost of an all-electric school bus, making it just as affordable as traditional buses powered by internal combustion engines. For other eligible districts, each bus can receive up to $250,000 in funding. This level of financial support can help to bridge the cost gap between electric and conventional buses. Furthermore, the funding can also be used to cover the cost of EnergyStar certified charging infrastructure. LionEnergy is positioned to assist customers in securing and installing this infrastructure, making the transition to electric buses smoother and more feasible.
As part of the Infrastructure Investment and Jobs Act, the U.S. Federal Government has committed an impressive $5 billion in funding towards deploying zero-emission and clean school buses over the next five years. This initiative will significantly contribute to providing healthier commutes for students nationwide, particularly in underserved communities. These areas have historically suffered from disproportionately poor air quality, a problem that this initiative aims to alleviate. Moreover, school districts are set to reap the rewards of the reduced energy and maintenance costs that all-electric school buses provide. The upfront costs may be higher, but the long-term savings and environmental benefits make the investment worthwhile, providing a sustainable and economical solution for the future of school transportation.
Leveraging its LionGrants team of experts, Lion stands as an eligible contractor under the program, equipped to apply for funding on behalf of school districts and private fleets. In addition to this, Lion is also prepared to offer assistance to these entities with their own direct applications. The program opens a window of opportunity for a wide range of organizations. State and local government entities offering school bus services, for-profit and non-profit school bus contractors meeting eligibility criteria, non-profit school transportation associations, tribes, tribal schools, and tribal organizations are among those who can benefit from the rebates offered under this program. This initiative further underscores the commitment to making zero-emission transportation accessible to all, fostering healthier communities and a sustainable future.
