The accident happened at 6:35 a.m. at the 10800 block of South Lake Stevens Road.
"Basically the road turned to the right the vehicle kept going straight," Lake Stevens Police Department's Interim Commander Dennis Taylor said.
The driver of the SUV was a male in his late 20s. He was injured and in stable condition. His female passenger sustained injuries that required her to be taken to the hospital.
"The female passenger was seriously injured. She was initially taken to Providence and then she was taken to Harborview," Taylor said.
The bus driver had minor injuries, one student sustained a broken jaw and the other bit his lip. Both are 14-year-old students at Cavelero.
"Speed was a factor and there is physical evidence at the scene that makes us suspect that drugs or alcohol were involved," Taylor said.
Traffic was detoured for over eight hours while crews cleaned-up spillage from oil, transmission and brake fluid. The city's street sweepers spent the day cleaning and sanding the road.
Lake Stevens School District said the following in a statement the day of the accident, "A Cavelero Mid High School bus was involved in a collision this morning. There were two students on board. Both students and the driver suffered minor injuries and were treated by emergency personnel. The accident is currently under investigation. We thank the Lake Stevens Police Department, the Snohomish County Sheriff's Department and the Lake Stevens Fire Department for their expertise and helping with our students and staff."