Subject: Request for Applications FY17 Funding to Purchase New, Clean Diesel or Propane School Buses


The US Environmental Protection Agency (EPA) allocates funds to reduce diesel emissions under the Diesel Emissions Reduction Act (DERA) that was reauthorized in 2012. DERA authorizes the EPA to support a state clean diesel grant program to replace higher-polluting diesel engines. The Montana Department of Environmental Quality (DEQ) was awarded a state clean diesel grant and proposes to partner with schools to replace nine or more school buses in designated air sheds.

DEQ is soliciting interest from K-12 schools or districts in Flathead, Lake, Lewis and Clark, Lincoln, Missoula, Ravalli, Sanders, Silver Bow and Rosebud counties to replace their model year 2001-2006 higher polluting diesel-powered C and D type school buses with new, clean diesel or propane school buses. These counties have areas listed in EPA’s FY 17 Priority County List, EPA’s Green Book of Nonattainment Areas for Criteria Pollutants, and DEQ’s “Communities at Risk for Fine Particulate Matter (PM2.5) Nonattainment.”

Under this program, funds are awarded to successful applicants for purchasing cost-shared diesel or propane school buses powered by a 2017 model year or newer engine certified to EPA emission standards. Institutions that use private school bus contractors need to coordinate with their contractors to apply for these funds. Additional information about limitations on the use of these funds (e.g., replacement schedules, model years, types, emission standards, etc.) is included in the application materials. Applicants are required to provide at least a 75 percent non-federal match to DEQ’s share for each bus purchased. The match may be secured through school or depreciation funds or other non-federal sources. The awarded funds will cover the lower of either $20,700 or 25 percent of the cost of each bus, based on the lowest bid with options.

Schools may apply to replace more than one bus, but must complete a separate application for each bus.

Interested parties must submit their applications and the required supporting documents to the DEQ contact person listed below. All application materials must be postmarked by 5:00 p.m. local time on November 15, 2017. Applications received with a postmark after the stated date/time will not be accepted. DEQ will notify the successful applicants on or before December 8, 2017 All activities and billing under this program must be completed by August 28, 2018. Additional copies of these application materials can be obtained via the DEQ website at:

Bill Webb

Montana DEQ – Energy Bureau

P.O. Box 200901

Helena, MT 59620-0901

406.444.6465 (phone), 406.444.6836 (fax)