HVIP Public School Bus Set-Aside/Local Educational Agency School Bus Replacement Grants

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Current Incentive Amount(s)

School Bus incentive amounts in the Zero-Emission School Bus and Infrastructure (ZESBI) project intend to cover nearly, if not all, of the full cost of a new zero-emission school bus and are shown below.

Current Incentive Amounts

School Bus Type

Without a wheelchair lift

With a wheelchair lift

Type A

$280,000

$295,000

Type C

$340,000

$355,000

Type D

$360,000

$375,000

Who is Eligible

ZESBI eligible applicants include: public school districts, public charter schools, joint power authorities, and county offices of education. CARB will prioritize applications based on the priority tier structure as specified in the implementation manual, which includes legislative priority grantees such as small and rural school districts, and school districts serving a high percentage of unduplicated pupils. View the list of local educational agency priority ranking in the Local Educational Agency Prioritization List.   

How it’s Administered

ZESBI funds are administered through a dedicated funding source in HVIP. HVIP funds are distributed via a third-party administrator who administers the ZESBI project incentives. Complementary infrastructure funding is administered through CEC’s project administrator and is designed to assist public school districts awarded through ZESBI with funding the charging infrastructure, and associated costs, necessary for the operation of the ZE school buses. 

Where and When it’s Offered

Zero-Emission School Bus and Infrastructure

The ZESBI application period for FY 2023-24 opened May 14, 2024 and is expected to close September 30, 2024.

CARB has been appropriated $375 million to support grants statewide to local educational agencies for the replacement of internal combustion school buses with new zero-emission school buses. An additional $125 million was appropriated to CEC to provide complementary grants for charging infrastructure.

For more information, or to apply for funding, visit the ZESBI webpage.

Public School Bus Set-Aside

Established as a program for school districts located in small and medium-sized air districts, the first-year application period opened March 2022 and ended June 2022. The second application period opened June 20, 2023 and closed December 15, 2023. For updates on the Public School Bus Set-Aside, visit the HVIP program page.

Project Funding or Participation Requirements

CARB sets requirements that participating school districts must adhere to for the ZESBI project. Requirements can be found in the HVIP Implementation Manual Appendix G. Key requirements include:

  • Applicants must own the school bus that is being used to apply for funding
  • Replaced school bus must be scrapped within 24-months of receipt of the new ZE school bus
  • Replaced school buses must be MY 2010 or older
  • Replaced school bus must have a Gross Vehicle Weight Rating of greater than 10,000 lbs.

Announcements and Upcoming Activities

  • Funding Available Now: The FY 2023-24 allocation of $375 million for ZESBI opened for applications on May 14, 2024 and is expected to close September 30, 2024.
  • Statewide ZE School Bus Procurement Contract: To support future school bus funding opportunities, the Department of General Services, in coordination with CARB and the California Workforce Development Board developed statewide procurement contracts with manufacturers of zero-emission school buses. These contracts are currently available to help local educational agencies secure competitive pricing, and also include requirements to support the development of high-quality jobs. State and local governments, along with local educational agencies, are able to purchase zero-emission school buses through the procurement contracts. Any local government agency can utilize the statewide procurement contract, regardless of if they are pairing the contract with CARB incentives.
  • Future Funding Availability: The Governor’s May revised budget proposal appropriates $671 million in funding to CARB for ZESBI for FY 2024-25, this funding amount may change once the state budget is finalized. To learn more about future funding, sign up for GovDelivery Notifications.

Project Resources

More information can be found at californiahvip.org.