This is the first time the school buses have been rolled under the Diesel Emissions Reduction Program (DERP). Previously school buses received funding under the EPA's Clean School Bus USA program, which is now rolled up under DERP.

Congress authorized the EPA to spend $200 million per year over five years on DERP with the passage of the 2005 Energy Bill. But, until this year, Congress could not agree on a budget. In 2006 and 2007, the Clean School Bus USA program received $7 million in both 2006 and 2007 through continuing funding resolutions.

Of the new $49.2 million funding, 70 percent,or approximately $34.4 million, will go to state and local governments and eligible non-profits for diesel retrofits. Private fleets will not be eligible for grants, but can partner with an eligible grantee. The EPA allocated approximately $3.4 million for emerging diesel emissions reduction technologies, $3.4 million for the Smartway Clean Diesel Finance program, which aids small fleet owners in loans for new vehicle purchases, and $14.8 million for individual state programs.

In addition to the $49.2 million program, the EPA will target $9.8 million specifically toward California’s high-pollution South Coast and San Joaquin Valley regions.

Margo Oge, director of EPA’s Office of Transportation and Air Quality, said she was committed to getting all grants out between August and October of this year. She added that the regional collaboratives managing the grants will use local air quality levels, population, innovation and overall cost effectiveness to determine whether school buses get funding beyond current levels.