Michigan Propane School Buses
One-stop for huge savings on vehicle fuel, maintenance, fueling infrastructure, and tailpipe emissions.
Propane Bus Qualities
Click Image to Enlarge
Micro Bird G5 School Bus
Click Image to Enlarge
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 fleet owners 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
- Used propane school bus (not lease) –$2,000/bus, up to $4,000
- New Propane Vehicle – $4,000/vehicle, up to $16,000
New Propane Vehicle Conversion (EPA) – $4,000/unit, up to $16,000
- Vehicle Information
- Applicant information
- Propane Supplier information
- Attach invoice for new propane vehicle or propane retrofit system
Return completed application in 1 of 3 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
Open Now!
EGLE will accept and process applications on a first-come, first-served basis until funding is exhausted.
EGLE is offering grants for projects that will reduce diesel emissions by replacing old vehicles, engines, and equipment. Both public and private entities will be eligible to apply for funds to support eligible projects.
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.
CONTACT:
Dan Zbozien, EGLE
ZbozienD@Michigan.gov
(517) 290-5722
CURRENTLY CLOSED
MI Clean School Bus Grant – $125 million to purchase no- or low-greenhouse gas emission school buses, including alternative fuel vehicles, such as fueling stations, as eligible expenses. Includes Propane School Buses.
Available to any Michigan School District. Third-party vendors will not be accepted as applicants.
CONTACT:
Troy Hansbarger, Michigan Dept. of Education
hansbargert@michigan.gov
Katrina Morris, Executive Director, Michigan Association of Pupil Transportation
kmorris@wsesd.org
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
CURRENTLY CLOSED
Includes propane school buses or buses in service for the transportation of students. EPA anticipates awarding approximately $400 million in competitive grant funding under the Clean School Bus (CSB) Grants Program Notice of Funding Opportunity (NOFO).
CONTACT:
Clean School Bus Program
cleanschoolbus@epa.gov
EPA is authorized under the Diesel Emissions Reduction Act to offer funding assistance to accelerate the upgrade, retrofit, and turnover of the legacy diesel fleet.
EPA anticipates awarding a total of approximately $115 million under this NOFO: $58 million in Fiscal Year (FY) 2022 funding and $57 million in FY 2023 funding, subject to the availability of funds, the quantity and quality of applications received, and other considerations.
All application packages must be submitted electronically to EPA through Grants.gov no later than Friday, December 1, 2023, at 11:59 p.m. (ET) to be considered for funding.
CONTACT:
DERA Helpline
dera@epa.gov
877-623-2322
Federal Transportation Agency Grants
Low to No Program funds will be awarded to assist the purchase or lease of buses that use low- or no-emission propulsion technologies, including related equipment or facilities. At least 25% of funds are reserved for low-emission projects, which include propane vehicles.
Eligible applicants for the Low- or No-Emission Program include designated recipients, States (including territories and Washington D.C.), local governmental authorities, and Indian Tribes. Except for projects proposed by Indian tribes, all proposals for projects in rural (non-urbanized) areas must be submitted by a State, either individually or as a part of a statewide app
If you have difficulty accessing the full announcement electronically, please contact:
FTA Office of Program Management
Grant Closes: July 14, 2025
Eligible applicants for the Low- or No-Emission Program include designated recipients, States (including territories and Washington D.C.), local governmental authorities, and Indian Tribes. Except for projects proposed by Indian tribes, all proposals for projects in rural (non-urbanized) areas must be submitted by a State, either individually or as a part of a statewide app
If you have difficulty accessing the full announcement electronically, please contact:
FTA Office of Program Management
National Tax Credit Information
APPLY TODAY
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.
APPLY TODAY
Beginning January 1, 2025, the Treasury Department will offer tax credits for the production and sale of low-emission transportation fuels, including sustainable aviation fuel (SAF). This includes eligible propane vehicles. The tax credit amount is $0.20 per gallon for non-aviation fuel and $0.35 per gallon for SAF.
The credit may be claimed by taxpayers producing and selling qualifying transportation fuel between 2025 and 2027.
For more, see the IRS guidance and FAQs on this credit.
The CFPC, in effect, consolidates and replaces several fuel-related credits that expired at the end of 2024.
The following criteria must be satisfied for credit eligibility:
- Producers must be registered with the IRS.
- All production facilities used to claim the credit must be located in the United States or its possessions (i.e., Puerto Rico, Guam, the U.S. Virgin Islands, and other territories).
- To be considered “clean,” fuel produced at such facilities must have lifecycle emissions of no more than 50 kilograms of CO2 or CO2 equivalent per 1 million British Thermal Units (mmBTU).
- Qualifying fuel must be deemed “suitable for use as a fuel in a highway vehicle or aircraft” and must be sold to “unrelated persons” as defined in IRC Section 52(b).
CONTACT
Kate Gaziano
kgaziano@npga.org
