Blue Bird Applauds EPA’s $965 Million Clean School Bus Funding to Accelerate Adoption of Zero-Emission Student Transportation

Rhea-AI Summary

Blue Bird (Nasdaq: BLBD) applauds the EPA's announcement of $965 million in additional funding for clean school buses through the Clean School Bus Rebate Program. This fourth round of funding brings the total to nearly $3 billion, enabling about 1,300 school districts to replace old diesel buses with nearly 8,700 electric and ultra-low emission vehicles.

Blue Bird, the leader in electric and low-emission school buses, has over 2,000 electric buses in operation, covering more than 5 million miles. The company is expanding its production capacity, including opening a 40,000 square foot EV Build-up Center in 2023. Additionally, Blue Bird received an $80 million DOE grant to convert a former diesel motorhome facility into a 600,000 square foot electric and low-emissions vehicle manufacturing facility, creating over 400 new jobs.

Positive

• EPA announced $965 million in additional funding for clean school buses
• Blue Bird has over 2,000 electric school buses in operation, more than any other manufacturer in North America
• Company received an $80 million DOE grant for manufacturing facility conversion
• Expansion plans include creating over 400 new manufacturing jobs
• Blue Bird's electric buses have covered more than 5 million miles to date

Negative

• None.

Insights

Financial Analyst

The EPA's announcement of $965 million in additional funding for clean school buses is a significant positive development for Blue Bird (BLBD). This fourth round of funding brings the total investment to nearly $3 billion, which is part of a larger $5 billion commitment under the Bipartisan Infrastructure Law.

Key points for investors:

• Blue Bird is well-positioned to benefit from this funding as the leader in electric and low-emission school buses.
• The company has over 2,000 electric school buses in operation, more than any other manufacturer in North America.
• Blue Bird is expanding its production capacity, including a new 40,000 sq ft EV Build-up Center and plans for a 600,000 sq ft facility conversion.
• The DOE grant of $80 million covers 50&percent; of the $160 million investment for the new facility, reducing financial risk.
• The expansion is expected to create over 400 new manufacturing jobs, potentially boosting production and revenue.

While the news is positive, investors should monitor how effectively Blue Bird can capitalize on this opportunity and maintain its market leadership in the face of increasing competition in the electric school bus market.

Environmental Policy Expert

The EPA's Clean School Bus Rebate Program represents a significant shift in environmental policy with substantial implications for the school transportation sector. Key aspects to consider:

• The program aims to replace approximately 8,700 diesel buses with electric and ultra-low emission vehicles, marking a substantial reduction in school transportation emissions.
• This initiative aligns with broader climate goals and public health objectives by reducing students' exposure to diesel emissions.
• Blue Bird's electric buses have already covered over 5 million miles, demonstrating the viability of this technology at scale.
• The replacement of 2,000 diesel buses with zero-emission vehicles reduces carbon emissions by 21,000 metric tons annually, a significant environmental impact.

The continued funding and expansion of this program signal a long-term commitment to cleaner transportation in the education sector. This trend is likely to accelerate the transition away from diesel buses, potentially reshaping the entire school bus manufacturing industry in favor of companies like Blue Bird that are leading in electric and low-emission technologies.

Company Continues to Invest in Electric School Bus Manufacturing Expansion and Job Growth

MACON, Ga.--(BUSINESS WIRE)-- Blue Bird Corporation (Nasdaq: BLBD), the leader in electric and low-emission school buses, commends the announcement by the U.S. Environmental Protection Agency (EPA) to provide $965 million in additional funding for clean school buses to reduce pollution and enhance student and community health. The fourth round of funding builds on nearly $3 billion already awarded through the EPA’s landmark Clean School Bus Rebate Program. The program to date will enable approximately 1,300 school districts across the U.S. to replace old diesel buses with nearly 8,700 electric and ultra-low emission vehicles.

The EPA’s Clean School Bus Rebate Program is part of the Bipartisan Infrastructure Law (BIL), which provides an unprecedented $5 billion of funding to transform the nation’s fleet of school buses. The Clean School Bus Program funds zero- and low-emission buses, including electric and propane buses, which produce lower tailpipe emissions than their diesel predecessors.

“The EPA announced nearly $1 billion of funding from the fourth round of the widely popular and highly effective Clean School Bus Rebate Program,” said Phil Horlock, president and CEO of Blue Bird Corporation. “The program continues to be instrumental in accelerating the adoption of clean student transportation. The funds will enable even more school districts nationwide to acquire electric school buses to protect student health and air quality in our communities. Blue Bird’s growth plans meet the increasing demand for zero-emission school buses. As the leader in zero- and low-emission school buses, Blue Bird continues to invest in technology innovation, electric school bus manufacturing expansion, and good-paying jobs in the U.S.”

Blue Bird has over 2,000 electric, zero-emission school buses in operation today – more than any other school bus manufacturer in North America. To date, the company’s electric school buses have covered more than five million miles. Replacing 2,000 diesel-powered school buses with an equal number of zero-emission vehicles reduces harmful carbon emissions by more than 21,000 metric tons annually. In addition, nearly 150,000 students a day are no longer exposed to diesel tailpipe emissions.

Blue Bird continues to significantly expand its electric school bus production to meet the rising demand for clean student transportation nationwide. In 2023, the company opened a 40,000 square foot Electric Vehicle (EV) Build-up Center. In addition, the U.S. Department of Energy (DOE) recently selected Blue Bird to receive an $80 million grant to convert a former manufacturing site for diesel-powered motorhomes into an approximately 600,000 square foot, electric and low-emissions vehicle manufacturing facility. The grant represents 50 percent of the total $160 million investment required to complete the conversion project. The conversion will add more than 400 new, good-paying manufacturing jobs.

Blue Bird is the only U.S.-owned and operated school bus manufacturer in the United States. The company manufactures its school buses in Fort Valley, Georgia. The shift to clean student transportation helps Blue Bird sustain approximately 2,000 good-paying jobs.

About Blue Bird Corporation

Blue Bird (NASDAQ: BLBD) is recognized as a technology leader and innovator of school buses since its founding in 1927. Our dedicated team members design, engineer and manufacture school buses with a singular focus on safety, reliability, and durability. School buses carry the most precious cargo in the world – 25 million children twice a day – making them the most trusted mode of student transportation. The company is the proven leader in low- and zero-emission school buses with more than 20,000 propane, natural gas, and electric powered buses in operation today. Blue Bird is transforming the student transportation industry through cleaner energy solutions. For more information on Blue Bird's complete product and service portfolio, visit www.blue-bird.com.

Forward Looking Statements

This press release includes forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations for future financial performance, business strategies or expectations for our business. Specifically, forward-looking statements include statements in this press release regarding earnings growth and Blue Bird’s future positioning and may include other statements preceded by, followed by or that include the words “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “target” or similar expressions.

These forward-looking statements are based on information available as of the date of this press release, and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. The factors described above, as well as risk factors described in reports filed with the SEC by us (available at www.sec.gov), could cause our actual results to differ materially from estimates or expectations reflected in such forward-looking statements.

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Blue Bird Investor Contact

Mark Benfield

Investor Relations

M: +1.478.822.2315

E: Mark.Benfield@blue-bird.com

Blue Bird Media Contact

Julianne Barclay

TSN Communications

M: +1.267.934.5340

E: julianne@tsncommunications.com

Source: Blue Bird Corporation

FAQ

How much funding did the EPA announce for clean school buses in the fourth round?

The EPA announced $965 million in additional funding for clean school buses in the fourth round of the Clean School Bus Rebate Program.

How many electric school buses does Blue Bird (BLBD) have in operation?

Blue Bird (BLBD) has over 2,000 electric, zero-emission school buses in operation today, more than any other school bus manufacturer in North America.

What is the value of the DOE grant Blue Bird (BLBD) received for facility conversion?

Blue Bird (BLBD) received an $80 million grant from the U.S. Department of Energy to convert a former manufacturing site into an electric and low-emissions vehicle manufacturing facility.

How many new jobs will Blue Bird (BLBD) create with its manufacturing expansion?

Blue Bird (BLBD) plans to add more than 400 new, good-paying manufacturing jobs through its facility conversion project.