California Air Resources Board

Hybrid & Zero-Emission Truck & Bus Voucher Incentive Project (HVIP)
Statewide program that provides vouchers to help offset the incremental cost of eligible trucks and buses. For school bus purchases, fleets can get up to $220,000 per bus, plus an additional $15,000 per bus if operated in a disadvantaged community. New in 2022, the Public School Bus Set-Aside for Small and Medium Air Districts offers school bus vouchers up to $400,000 and complementary infrastructure incentives administered through CEC’s EnergIIze program. Visit www.energiize.org to learn about school bus infrastructure incentives and more.

Carl Moyer Program
The Carl Moyer Program 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.

Volkswagen Environmental Mitigation Trust
The Volkswagen Environmental Mitigation Trust provides approximately $423 M for California to mitigate excess emissions caused by VW’s use of illegal defeat devices. The approved Beneficiary Mitigation Plan provided $130 M available for zero-emission transit, school, and shuttle buses.

The San Joaquin Valley Air Pollution Control District (SJVAPCD) is administering funding for buses. Funding was released in two installments starting in the first quarter of 2019, first come first served. Sign up for the VW Environmental Mitigation Trust Email List to receive updates.

U.S. EPA Diesel Emission Reduction Act (DERA) and School Bus Program Rebates
The Diesel Emissions Reduction Act of 2010 allows the EPA to offer grants and rebates to reduce harmful emissions from older, dirtier diesel vehicles.

U.S. EPA Clean School Bus Program Funding
New in 2022, U.S. EPA’s new Clean School Bus Program provides five billion dollars over five years (FY 2022-2026) to replace existing school buses with clean and zero-emission models.

Lower-Emission School Bus Program (LESBP)
The Lower-Emission School Bus Program (LESBP) provides funding to replace high-emitting pre-1994 model year school buses with lower-emitting new school buses, and to equip in-use diesel school buses with ARB-verified diesel retrofit devices to reduce toxic PM emissions.

Local air districts follow the LESBP guidelines when using local funds for school bus projects. For information on local funding programs, contact your local air pollution control district.