Clean Diesel Grant Program
Administered by South Dakota Department of Agriculture and Natural Resources
Schools and transit operators can receive rebates covering 25% to 45% of the cost of replacing old diesel buses with new, cleaner vehicles—with the highest rebate (45%) for zero-emission buses. Contact the SD DANR Air Quality Program at 1-800-438-3367 or email the program administrator to apply before the Round 18 deadline of December 12, 2025.
School bus and transit contractors can help customers qualify for rebates on new bus purchases: up to 25% rebate for EPA-certified engines, 35% for CARB Low-NOx engines, or 45% for zero-tailpipe-emission buses. Contractors must ensure customers complete the required application forms, including the Bus Replacement Application and Certificate of Disposal, and submit to SD DANR by the application deadline.
The program provides tiered rebates (25%, 35%, 45%) based on emissions standards to replace high-emitting diesel buses in schools and transit systems; applicants must submit completed applications including bus specifications, disposal documentation, and reimbursement requests to SD DANR. Funded by EPA DERA grants with limited current funding available, the program aims to reach as many eligible applicants statewide as possible, with Round 18 applications due by December 12, 2025.
Program details
- Program ID
- 22237
- Last updated
- 10/10/2023
Eligibility
- Sectors
- commercial schools
- Technologies
- zero emission vehicles electric school buses electric transit buses
Program summary
Under the South Dakota Clean Diesel Grant Program, the South Dakota Department of Agriculture and Natural Resources (DANR) provides rebates to assist in purchasing new buses to replace old, high-emitting diesel buses. Rebates will be provided to public schools, non-public schools, state special schools, other educational programs, shuttle, or transit system providers, and school bus contractors. Total rebate per replacement bus will be up to 25% of the purchase price of a new bus with an engine certified to EPA emission standards, 35% of the purchase price of a new bus with an engine certified to meet CARB’s Low-NOx standards, or 45% of the purchase price of a zero tailpipe emission bus.
Contact & resources
- Contact email
- barb.regynski@state.sd.us
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
