Funding for Clean School Buses
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Financial incentives are a major part of the California Air Resources Board's (CARB) efforts to ensure clean school buses are operating at our schools and in our neighborhoods. These incentives can also help to drive the development of newer and cleaner technologies by speeding up their adoption by school bus fleet owners. Additionally, these funding programs can assist in preparing school districts and other local educational agencies for the requirements of Assembly Bill 579, which requires that, beginning January 1, 2035, 100% of all newly purchased or contracted school buses of a local educational agency be zero-emission. Funding programs are either provided to local air districts to administer or through direct, state-run programs.
Most state grant funding programs require fleets to comply with state regulations to be eligible for funding. As part of the grant application process, the local jurisdiction or the state agency may ask the school bus owners to report their fleet in CARB’s Truck Regulation Upload, Compliance and Reporting System (TRUCRS) and Clean Truck Check Vehicle Inspection System (CTC-VIS) in order to verify compliance. For more information, visit Fact Sheet: Truck and Bus Regulation School Bus Provisions.
CARB’s financial incentives promote clean school buses and drive the adoption of cleaner technologies, and more information on these incentives can be found below:
Funds Available for Public School Districts
The initial application period closed on September 30, 2024. An extended application period, reopened on October 8, 2024, at 10:00 AM Pacific Time and remained open until November 22, 2024, at 5:00 PM Pacific Time.
ZESBI is intended to cover nearly, if not all, of the full cost of new zero-emission school buses and their accompanying infrastructure for eligible applicants.
A total of $500 million was appropriated from Senate Bill (SB) 114 (Committee on Budget and Fiscal Review, Chapter 48, Statutes of 2023) for ZESBI. In Fiscal Year 2023-24, $375 million was allocated to support purchases of qualifying zero-emission school buses and $125 million was allocated to support infrastructure and associated cost incentives.
ZESBI funding prioritizes grantees operating the oldest internal combustion buses, grantees that were small and rural school districts, grantees that served a high percentage of students who were foster youths, receive free or reduced-price meals, or were English learners, and grantees purchasing zero-emission buses with bidirectional charging where available. Learn More
The Clean Truck and Bus Voucher Incentive Project (HVIP Standard)
As of November 2024, HVIP Standard funding for school buses have been exhausted.
HVIP Standard offers funding to help offset the incremental cost of zero-emission medium- and heavy-duty truck and bus purchases, including school buses. HVIP is designed to be easy to use; HVIP approved dealers complete the application on behalf of the fleet, and fleets are not required to scrap an existing vehicle. HVIP Standard is available statewide on a first-come, first-served basis, and all public school districts and third-party school transportation providers that serve public school districts are eligible for funding. Learn More
AB617 - Community Air Protection Incentives
Community Air Protection funds are implemented by local air districts. Incentives are available to support early action emissions reductions in communities most affected by air pollution, as well as to support communities selected for air monitoring or emissions reduction programs and those under consideration for future selection. School bus replacements are an eligible project type under Community Air Protection incentives. Learn More
Carl Moyer Program
The Carl Moyer Program is administered by local air districts and provides funding for cleaner-than-required engines and equipment. School buses are one of the many categories of equipment funded through the program. Grant amounts vary depending on the project type. Learn More
Clean Mobility in Schools
Clean Mobility in Schools funds clean transportation and mobility strategies, including electric vehicles and electric vehicle supply equipment in schools (K-12); car sharing for staff at schools to use zero-emission vehicles; curriculum development; workforce training; and outreach to students, parents, and the community. Building off lessons learned from the pilot projects and to further CARB’s equity initiatives, Clean Mobility in Schools opened a new solicitation for projects in summer 2023 and awarded four Clean Mobility in Schools Grants. Learn More
Lower-Emission School Bus Program (LESBP)
The LESBP is administered by local air districts, and funds new, cleaner technology school bus replacements and retrofit devices that significantly reduce toxic particulate matter emissions from diesel school buses. Learn More
Federal Clean School Bus Program
With funding from the Bipartisan Infrastructure Law, the United States Environmental Protection Agency’s (EPA) the Clean School Bus Program provided $5 billion to replace existing school buses with zero-emission and low-emission models.
CARB supported efforts by Local Education Agencies in applying for this grant by providing letters in support of funding applications.
The application period has now ended. Learn More
Federal Diesel Emission Reduction Act (DERA)
The Diesel Emissions Reduction Act (DERA) of 2010 allows the EPA to offer grants and rebates to reduce harmful emissions from older, dirtier diesel vehicles. EPA offers DERA funds via National Grants, Tribal Grants, Rebates, and State Allocations. Learn More
CARB has used DERA's State Allocations to fund retrofits and replacement of diesel school buses since 2011. For more information on CARB's allocation and spending of DERA funds, visit CARB and DERA School Bus Funding webpage.
Federal Clean Heavy-Duty Vehicle Grant Program
With funding from the Bipartisan Infrastructure Law, the United States Environmental Protection Agency’s (EPA) Clean School Bus Program provided $5 billion over five years (FY 2022-2026) to replace existing school buses with zero-emission and low-emission models. Learn More