Michigan Propane School Buses
One-stop for huge savings on vehicle fuel, maintenance, fueling infrastructure, and tailpipe emissions.
Propane Bus Qualities
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Micro Bird G5 School Bus
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Blue Bird Type C School Bus
Purchase New / Used School Buses and Maintenance through Roush and Holland Bus Co.
Easy to Install Infrastructure
| Off-site Private/Public Network | On-site Standard Private Fueling Station | On-site Advanced Private Fueling Station | |
|---|---|---|---|
|
Ownership |
None, Off-site Fueling Station |
On-site, Propane Supplier Owns |
On-site, Propane Supplier Owns |
|
Vehicle Access |
24/7 by Keycard |
24/7 |
24/7 |
|
Vehicle Limit |
Unlimited |
< 50 vehicles |
50 + vehicles |
|
Infrastructure Costs |
None |
District Covers
Onsite Prep Costs
$1,500 – $15,000
(Crash Protection, Electrical) |
District Covers
Onsite Prep Costs
$5,000 – $75,000
(Crash Protection, Electrical) |
|
Propane Tank Size |
N/A |
Propane Supplier Sets
1,000 – 3,000 Gallon Propane Tank |
Propane Supplier Sets
High-Capacity Propane Tank w/Canopy |
|
Equipment Costs |
None |
None—if Owned by Propane Supplier Propane Supplier Installs Pump, Meter and 1 or more Dispensers If School District Owns Equipment: |
None—if Owned by Propane Supplier Propane Supplier Installs Pump, Meter and Multiple Fuel Dispensers If School District Owns Equipment: |
|
Propane Cost per Gallon |
Negotiated with Propane Supplier |
Negotiated with Propane Supplier |
Negotiated with Propane Supplier |
Work With Your Propane Provider to
Get the Lowest Cost Per Mile
Work With Your Propane Provider to Get the Lowest Cost Per Mile
There are 380 Propane Marketers in Michigan, Use the Map to Find One in Your Local Area
Propane Public Fueling Stations
& Service Centers
Rebate Application
Receive up to $16,000 from the MPGA
The MPGA is offering school districts propane vehicle rebates
Apply Today! Rebates are available first come, first serve, while funding lasts.
New propane school bus
$4,000/bus, up to $16,000
New propane operational truck, van
$4,000/vehicle, up to $16,000
Used propane school bus (not lease)
$2,000/bus, up to $4,000
Converted propane operational truck, van
$4,000/vehicle, up to $16,000
- Vehicle Information
- Applicant information
- Propane Marketer information
- Attach invoice for new propane vehicle or propane retrofit system
Return completed application in one-of-three ways:
- Email to: mpga@kdafirm.com
- Fax to: (517) 485-9408
- Mail to:
MPGA
629 W. Hillsdale St.
Lansing, MI 48933OR
- Upload Completed Application Below
Questions? Contact the Rebate Team: (517) 312-0097
Michigan Grants
COMING SOON
Includes propane vehicles. Buses, medium heavy-duty or heavy heavy-duty trucks, marine engines, locomotives, non-road engines, equipment, or vehicles used in: construction, handling of cargo (including at a port, airport, or train yard), agriculture, mining, industry and energy production.
A total of $375,960 is available. All grant proposals should be between $25,000 (the minimum) and $375,960 (the maximum).
CONTACT:
Dan Zbozien, EGLEZbozienD@Michigan.gov(517) 290-5722
MI Clean School Bus Grant – $125 million to purchase no- or low-greenhouse gas emission school buses, including alternative fuel vehicles, such as charging stations, as eligible expenses.
Who Can Apply:
- Any School District
- School District must be the applicant, no third-party vendors
What:
Propane School Buses:
- 40% Costs Covered – prioritized school districts
- 25% Costs Covered – non-prioritized school districts
- 1 School Bus minimum, 10 School Bus maximum, or 50% of your fleet, whichever is fewer.
Detail Launch:
November 4th, 2024
Grant Deadline:
May 2nd, 2025
Contact:
Troy Hansbarger, Michigan Dept. of Education
hansbargert@michigan.gov
Katrina Morris, Executive Director, Michigan Association of Pupil Transportation
kmorris@wsesd.org
Add-Ons (Each qualifying add-on increases the funding amount by 5%):
High need district/SAIPE: School Districts listed in the Small Area Income and Poverty Estimates (SAIPE) School District estimates for 2022 as having 15% or more students living in poverty.
Tribal School: School districts that are federally funded through the Bureau of Indian Affairs, School districts that receive basic support payments under section 7703(b)(1) of Title 20 for children who reside on Indian land
NAAQS: School districts residing in a county currently designated as in nonattainment or maintenance status for NAAQS
Free/Reduced Lunch: School Districts with the percentage of students receiving free and reduced lunch for the 2022-23 school year greater than or equal to 70%
Rural School District: Limited to school districts identified with locale codes “42 rural distant or “43 rural remotes” by the National Center for Educational Statistics
ADA-Accessible Bus School districts wishing to utilize funding to purchase an ADFA-accessible school bus
The Michigan Department of Education (MDOE) encourages school districts to stack funding; Stackable funding must be received on January 1st or after. The Michigan Propane Gas Association’s propane vehicle rebate qualifies as additional funding. If you apply, stack the MPGA’s rebate funding with it!
National EPA Grants
CLOSED
Includes propane vehicles. Eligible diesel vehicles, engines, and equipment include School buses, Class 5 – Class 8 heavy-duty highway vehicles, Locomotive engines, Marine engines, Non-road engines, equipment or vehicles used in construction, handling of cargo (including at ports or airports), agriculture, mining or energy production (including stationary generators and pumps).
CONTACT:DERA Helplinedera@epa.gov877-623-2322
National Tax Credit Information
If you’re installing propane fueling infrastructure between January 1, 2023, and December 31, 2032, you may qualify for the Alternative Fuel Vehicle Refueling Property Credit. Businesses can receive:
- 6% of installation costs (up to $100,000), or
- 30% of installation costs (up to $100,000) if labor and apprenticeship rules are met.
This credit applies to fuel dispensers and essential parts like installation labor. Tax-exempt entities, including state and local governments, may also qualify for the same credit.
For residential installations, consumers can claim a credit of up to 30% of the cost (up to $1,000) for propane fueling equipment installed at their homes.
To qualify, fueling equipment must be installed in a low-income or rural area. Check if your location qualifies using the 30C Tax Credit Eligibility Locator.
For more information, see IRS Form 8911.
