Michigan Propane School Buses
One-stop for huge savings on vehicle fuel, maintenance, fueling infrastructure, and tailpipe emissions.
Propane Bus Qualities
Livonia Public Schools Runs on Propane
Since switching to propane in 2020, Livonia Public Schools has 31 propane buses, cutting emissions and costs. Propane lets them put savings back into their schools and classrooms
Northview Public Schools Runs on Propane!
After dealing with soot-stained pavement and poor air quality, this district made the switch to propane. The fleet warms up faster in the winter, costs less to fuel, and keeps the neighborhood air cleaner.
ABC Transportation Runs on Propane
ABC has one of the largest fleets of propane-fueled school buses in Michigan and even in the Midwest. With over 220 buses, they transport over 8,000 school children throughout Detroit. The cost savings from fuel and maintenance costs alone made it a sound business decision.
Sandusky Community Schools Runs On Propane!
Sandusky Community Schools switched to propane buses for cleaner air, easier fueling, and big savings!
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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 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
Who Runs it?
Michigan Department of Environment, Great Lakes, and Energy (EGLE)
Who is eligible?
cities, townships, villages, county governments, port authorities, transit agencies, public school districts, private schools, and non-profit and private organizations. All entities must own and operate their vehicle fleets.
What is Eligible?
Can not be used to expand fleet, must be used for vehicle replacements. Zero tailpipe emission vehicles/engines/equipment, or Hybrid or alternative fuel vehicles/engines/equipment. Includes buses and trucks that run on propane.
Amount eligible to be awarded
One application per entity. The cap amount averaged at $500,000. No hard cap beyond that amount.
Is it available now?
EGLE website says that funding from 2024 is still available. Have not received confirmation from EGLE on 2025/2026 grant availability.
Who runs it?
Michigan Department of Education (MDE) in collaboration with EGLE and MAPT
Who is Eligible?
Local or state governmental entities responsible for providing school bus service to public school systems or for purchasing/leasing/contracting for school buses, Public charter school districts, or schools with special education programs using transportation.
What is Eligible?
New school buses that run on propane, electric, or CNG that will replace existing diesel school buses. Funding may not be used for maintenance or operational costs of new or existing vehicles.
Amount eligible to be awarded
$125 million available in total. A maximum of 10 buses can be purchased. The department may cap total funding amounts per qualified recipient. The program will continue with subsequent rounds until all funds are depleted.
Is it available now?
Current round of funding ended on December 19, 2025. No news yet on whether another round will be opened. Depends on if any funds remain after this round of funding.
Who Runs it?
Michigan Infrastructure Office (MIO)
Who is eligible?
All communities, including local units of government, planning organizations, and federally recognized Tribal nations.
What is eligible?
Infrastructure projects across all asset classes (energy, environment, water, roads, bridges, ports, trails, electric vehicles, facilities, etc.)
Amount eligible to be awarded?
No published capped amount for the grant.
Is it available now?
Rolling Deadlines, but it is Available now. Apply for technical assistance NOW before January 8, 2026.
United States Federal Funding
US Department of Transportation
Urbanized Area Formula Grants Section 5307
Who Runs the Grant?
The Federal Transit Administration (FTA)
Who Is Eligible?
Public transportation services in areas where the population exceeds 50,000
What is Eligible?
Projects relating to planning and design, capital projects, preventive maintenance, and operating assistance
Amount eligible to be awarded
Formula funding, not set amount.
Is it Available right now?
Program is ongoing with application windows set by the local ordinances.
Formula Grants for Rural Areas Section 5311
Who Runs the Grant?
The Federal Transit Administration (FTA)
Who is Eligible?
Public transportation in rural areas (populations under 50,000)
What is Eligible?
Projects relating to planning, capital, operating assistance, mobility management programs, and acquiring public transportation services
Amount eligible to be awarded
Formula funding, not set amount.
Is it Available right now?
Program is ongoing with application windows set by local ordinances.
Who Runs the Grant?
The Federal Transit Administration (FTA)
Who is Eligible?
Operators of public transportation that focus on the mobility of seniors and persons with disabilities.
What is Eligible?
Propane buses and vans, wheelchair lifts, transit IT, mobility management, acquiring public transportation services, and training.
Amount eligible to be awarded
Formula funding, not set amount.
Is it Available now?
Program is ongoing with application windows set by local ordinances.
Who Runs the Grant?
Federal Transit Administration (FTA)
Who is Eligible?
Covers transportation services at the federal, state, local government, private, and non-profit levels.
What is eligible?
Low emissions vehicles and fuelling infrastructure. Includes Propane vehicles.
Amount eligible to be awarded
$1.1 Billion available in total. Award sizes ranged from $1,215,776 to $99,499,531.
Is it available now?
No. Program closed July 14, 2025.
Who Runs the Grant?
Federal Transit Administration (FTA)
Who is Eligible?
Organizations responsible for operating fixed-route bus services. Including private nonprofit organizations engaged in public transportation.
What is Eligible?
Purchase/rehab/lease buses and related equipment (any propulsion type). Acquire/construct/purchase/rehab/lease bus-related facilities. Includes Propane buses.
Amount eligible to be awarded?
$398 Million available in total. Award sizes ranged from $131,168 to $26,880,000.
Is it available now?
No. Program closed July 14, 2025.
US EPA Grants
Who Runs the Grant?
Environmental Protection Agency (EPA)
Who is Eligible?
Public school districts, Regional Education Service Agencies (RESA), Joint Transportation Agencies (JTA), Indian Tribes, Tribal Organizations, third-party contractors.
What is eligible?
School Buses running on clean energy. Includes Propane School Buses.
Amount eligible to be awarded
For propane; up to $35,000 (Class 7+) or $30,000 (Class 3–6) for prioritized districts; $25,000 / $20,000 if not prioritized
Is it Available right now?
No. Closed in 2024. No updates since 2024.
Who Runs it?
Environmental Protection Agency (EPA)
Who is Eligible?
A regional, state, or local agency with jurisdiction over transportation or air quality. nonprofit organization or institution that provides pollution-reduction or educational services to those who own/operate diesel fleets, or has, as its principal purpose, promoting transportation or air quality.
What is Eligible?
Fund projects to retrofit or replace existing diesel engines/vehicles/equipment using EPA/CARB certified engine configurations and verified retrofit/idle-reduction technologies. funds can’t be used for emissions reductions mandated by federal law, and testing equipment or fueling infrastructure is not eligible.
Amount eligible to be awarded
$115 million total available. caps ranged from $1.5M to $4.5M per application. Caps based on region.
Is it Available now?
No. Closed in 2022-2023. No Updates since 2023.
IRS Tax Credits
Who runs the program?
Internal Revenue Service (IRS)
Who is Eligible?
Businesses and individuals who install propane refueling stations on their property.
What is Eligible?
Store or dispense qualifying alternative fuel for vehicles. Includes propane.
Amount eligible to be awarded? – For businesses, capped at $100,000 per single item. For personnel property, capped at $1,000 per single item.
Is it available now?
Yes. Infrastructure must be installed between January 1, 2023 and December 31, 2032.
Who runs the program?
Internal Revenue Service (IRS)
Who is Eligible?
Production facilities creating clean fuel for usage as a transportation fuel. Includes propane for autogas vehicles.
What is Eligible?
Credit earned per gallon (or gallon equivalent) of qualifying clean transportation fuel you produce and sell, which can reduce your federal income tax.
Amount eligible to be awarded
no fixed amount.
Is it available now?
Yes. Became available on January 1, 2025.
