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Propane School Bus Grant

*The Propane School Bus Grant is currently closed and not taking applications at this time.

Funding Summary

OED will offer approximately $250,000 in grants to Indiana school corporations to cover the incremental costs of buying new propane school buses. The incremental cost is the difference in price between a propane bus and a diesel or gasoline bus. Applicants can apply for 50% to 100% of the incremental costs, up to $10,000. The maximum grant will be $50,000 per award, but applicants can apply for a lower amount. Applicant must apply for a minimum of two school buses.

Funding Goal: The Office of Energy Development (OED) intends to increase public school corporations’ access to and knowledge of new propane school buses. Schools can benefit from propane school buses in a variety of ways, including decreasing school children’s exposure to harmful emissions, lowering maintenance costs through the use of a cleaner burning fuel, and increasing fuel diversity. By diversifying fueling sources, schools are able to reduce their exposure to fueling price shocks and improve their access to affordable, reliable energy. To learn how fleets across the US have benefited from using propane, follow this link and check “propane” on the lower left.

Grant guidelines may be found here 


Applications are due October 19, 2018 at 5:00 PM ET. The following items must be put into one zip file and sent to grants@oed.in.gov:

  • Application Form: IN Propane School Bus Grant 2018 - Application.doc
  • Bids on the new propane school buses, as well as bids on an equivalent diesel or gasoline bus. The latter is used to show the cost differential between a propane bus and a diesel or gasoline powered bus. The bids must show the bus specifications, price, and vendor contact information.
  • Proof that the engine of the new school propane school bus is EPA certified
  • Proof that the propane system is installed according to NFPA 52 guidelines
  • Proof that the applicant will have access to fueling propane infrastructure after receiving this grant. Some propane dealers will provide the infrastructure components through a lease as part of a long-term fuel agreement.