The EPA Should Improve Monitoring of 2022 Clean School Bus Rebate Recipients' Use of Funds and Deployment of Buses and Infrastructure

The EPA did not monitor bus deployment status and recipient use of over $836 million of 2022 Clean School Bus, or CSB, Program rebates, despite the Agency stating it would do so in the 2022 Clean School Bus (CSB) Rebates Program Guide. As of June 2024, only 22, or 6.1 percent, of the 360 schools that received rebates in 2022 had completed their rebate closeouts. At the time of this audit, we found that ten, or 59 percent, of the 17 schools we reviewed are in the process of installing the infrastructure necessary to operate the new clean buses and may not meet the program closeout deadline of October 2024. Additionally, the EPA did not provide guidance to recipients on how funds should be managed. We found that, contrary to multiple OIG briefings on strategies to reduce fraud risk, the EPA allowed recipients to keep CSB funds in accounts with other funds or earn interest on rebate funds while they wait to pay the final invoices, which increases the risk of program funds and interest earned being used for other purposes.