Active
Clean Energy Climate
Grant

Zero-Emission Transit and Shuttle Buses

Until Funds Exhausted Ongoing
Total Funding
$130,000,000
Maximum Award
$480,000
Overview

To replace older, high-polluting transit, school, and shuttle buses with new battery-electric or fuel-cell buses. Replacing an older bus with a zero-emission bus eliminates particulate matter and other pollutants that impact children and residents riding the buses, as well as residents throughout California communities.

Funder

California VW Environmental Mitigation Trust, San Joaquin Valley Air Pollution Control District (SJVAPCD), California Air Resources Board (CARB)

Resources

Total Funding

$130 million

Funding Source

Other

Maximum Award

$480,000

Award Details

  • Up to $216,00 per new Battery Electric Transit bus
  • Up to $480,000 per new Fuel Cell Transit bus
    • Although only transit agencies can apply for Transit Bus Component, applicants that are replacing a transit-style bus with a fuel cell transit-style bus may be eligible to receive $480,000 if that project would have been approved for $480,000 had the applicant been a transit agency.
  • School bus funding closed in November 2025

Eligibility

  1. Owners of transit buses, school buses and shuttle buses domiciled in California and operated primarily within the state
  2. Indian Tribes and Indian Tribes Beneficiaries (i.e., for federally-recognized Indian Tribes) that have entered into their own Environmental Mitigation Trust Agreement
  3. Agencies that are the lessors that lease or rent applicable transit, school and shuttle buses to third parties however, additional requirements must be met

Eligible Activities

New buses and old buses are eligible. See Guidelines pages 3-4 for details.

Duration

Project implementation must be completed within 18 months of contract execution.

Notable Requirements

Match funding from the applicant is encouraged and required for school bus purchases (at least 5%) and all non-government owned purchases (at least 25%). For school bus purchases, the cost of the required infrastructure for the new, replacement bus is used to meet the required 5 percent match. Match funding may include funding from other State, local, federal, non-profit, or private revenue sources that do not claim NOx emission reductions.

New buses must operate in California primarily for three years after purchase.

Application Packet Documents required to be submitted with the online application: IRS Form W-9, Copy of the current DMV registration, CHP form 292 or 343A (School Bus Only). Application Packet Documents required prior to application approval: Copy of proof of insurance, Copy of title, New bus quote, Authorization of project implementation and signing authority, Copy of bus route (Transit and Shuttle Bus Only), CARB Executive Order for the engine in the current bus, CARB Executive Order for the new bus, and photographs of the current engine and bus.

How to Apply

For transit bus finding, apply here. For shuttle bus funding, apply here.

EV InfrastructureSustainable TransportationTransportation Electrification

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