Electric school buses are practically free now

Federal and state governments are practically giving away electric school buses, and if your local district doesn't have its hand up yet, it should. The math is a no-brainer.

Why it matters: Exhaust from diesel school buses makes kids sick and curbs cognitive development. Plus, diesel buses emit greenhouse gases that contribute to climate change.

Electric school buses are a cleaner, safer alternative, and they're cheaper to operate — it costs about 14 cents a mile for electricity compared to 49 cents per mile for diesel fuel, according to Blue Bird, a leading school bus manufacturer.

They can also act as giant batteries to store surplus energy when not in use. That means cash-strapped districts can earn money from their parked buses by selling power back to the grid during times of peak demand.

The catch: An electric school bus costs $350,000 to $450,000 — three to four times a traditional diesel bus — and most districts can't afford the upfront expense, despite the long-term savings.

What's happening: A bunch of new government incentives make replacing aging diesel fleets an easy call.

The five-year, $5 billion Clean School Bus Program, approved in November 2021 as part of the infrastructure law and run by the Environmental Protection Agency, pays school districts up to $375,000 to replace a diesel bus with an electric one.