Michael Penn | Juneau Empire File                                School buses line up for students at Harborview Elementary School in December 2019.

Michael Penn | Juneau Empire File School buses line up for students at Harborview Elementary School in December 2019.

Federal settlement nets schools a new bus

Volkswagen bus replacement program adds to local fleet.

A new school bus is coming to Juneau as the result of a multibillion-dollar international scandal.

The Juneau School District will be one of eight districts to benefit from $4.4 million to replace 33 diesel school buses with new clean-burning buses under the Volkswagen Settlement School Bus Replacement Program, said Alaska Energy Authority in a news release Tuesday. The Alaska Energy Authority is a public corporation of the state tasked with reducing the cost of energy in Alaska.

Alaska received nearly $8.13 million as a result of Volkswagen’s federal settlement, according to AEA, and 60% of that is being disbursed for school bus replacements.

Juneau School District does not own its buses. Instead, it contracts with First Student. AEA preliminary design and environmental manager Betsy McGregor said in a phone interview it was First Student that applied for the grant.

[Juneau’s electric vehicle total continues to surge]

“The Juneau School District appreciates First Student’s efforts in applying for the school bus replacement program,” said Juneau School District chief of staff Kristin Bartlett in an email. “It is a positive step toward improving air quality in our community and around our school buildings.”

Kevin Hansen, manager for First Student, said in a phone interview that while he does not know much about the grant application — that, he said, was handled by a corporate office in the Lower 48 — there is a 15-year-old bus scheduled to be replaced soon.

Hansen said the bus does not contain any Volkswagen parts, but a newer bus will definitely have less impactful emissions.

“I know that we do have a unit that is due to be replaced this year,” Hansen said, “and it will be replaced this summer.”

First Student applied for one bus in Juneau, one in Kodiak Island Borough and four in the Matanuska-Susitna Borough, McGregor said.

Additional beneficiaries of the grants include Alaska Gateway School District, Anchorage School District, Kenai School District and Southeast Island School District, according to AEA.



Buses in applications were ranked based on the amount of ambient nitrogen oxides (NOx) and diesel particulate matter in the areas that the buses operate, according to AEA. Also under consideration were the presence of at-risk communities exposed to these pollutants, cost effectiveness at reducing NOx and voluntary matching funds.

“By replacing older engines with new technologies, the school buses will help improve air quality in these areas of the state,” said AEA Executive Director Curtis W. Thayer in a news release. “The new buses will result in a reduction of 24.6 short tons of NOx and 1.8 short tons of fine particulate matter over the remaining lifetimes of the replaced school buses.”

As part of the replacement program, McGregor said the buses must be used in the same manner as the vehicles they are replacing for at least five years.

Also, per the grant’s stipulations, it will be the end of the line for the old buses.

“They have to destroy the existing bus,” McGregor said.

• Contact reporter Ben Hohenstatt at 907-523-2243 or bhohenstatt@juneauempire.com. Follow him on Twitter at @BenHohenstatt

More in News

A residence stands on Tuesday, Dec. 23 after a fatal house fire burned on Saturday, Dec. 20. (Mari Kanagy / Juneau Empire)
2 house fires burn in 3 days at Switzer Village

Causes of the fires are still under investigation.

A house on Telephone Hill stands on Dec. 22, 2025. (Mari Kanagy / Juneau Empire)
Court sets eviction date for Telephone Hill residents as demolition plans move forward

A lawsuit against the city seeks to reverse evictions and halt demolition is still pending.

A Douglas street is blanketed in snow on Dec. 6, 2025. (Mari Kanagy / Juneau Empire)
Precipitation is forecast later this week. Will it be rain or snow?

Two storm systems are expected to move through Juneau toward the end of the week.

Juneauites warm their hands and toast marshmallows around the fire at the “Light the Night" event on winter solstice, on Dec. 21, 2025. (Mari Kanagy / Juneau Empire)
A mile of lights marked Juneau’s darkest day

Two ski teams hosted a luminous winter solstice celebration at Mendenhall Loop.

A Capital City Fire/Rescue truck drives in the Mendenhall Valley in 2023. (Clarise Larson / Juneau Empire file photo)
Juneau man found dead following residential fire

The cause of the fire is still under investigation.

CBJ sign reads “Woodstove burn ban in effect.” (City and Borough of Juneau photo)
Update: CBJ cancels air quality emergency in Mendenhall Valley Sunday morning

The poor air quality was caused by an air inversion, trapping pollutants at lower elevations.

A dusting of snow covers the Ptarmigan chairlift at Eaglecrest Ski Area in December 2024. (Eaglecrest Ski Area photo)
Update: Waterline break forces closure at Eaglecrest Friday, Saturday

The break is the latest hurdle in a challenging opening for Juneau’s city-run ski area this season.

Patrick Sullivan stands by an acid seep on July 15,2023. Sullivan is part of a team of scientists who tested water quality in Kobuk Valley National Park’s Salmon River and its tributaries, where permafrost thaw has caused acid rock drainage. The process is releasing metals that have turned the waters a rusty color. A chapter in the 2025 Arctic Report Card described “rusting rivers” phenomenon. (Photo by Roman Dial/Alaska Pacific University)
Ecosystem shifts, glacial flooding and ‘rusting rivers’ among Alaska impacts in Arctic report

NOAA’s 2025 report comes despite Trump administration cuts to climate science research and projects

The U.S. Capitol in Washington, D.C., on Oct. 1, 2025. (Photo by Jennifer Shutt/States Newsroom)
Moderate US House Republicans join Dems to force vote on extension of health care subsidies

WASHINGTON — Republican leaders in the U.S. House will face a floor… Continue reading

Most Read