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Financial Opportunities for California School Buses




Click on the links below to see what programs may be available to help you towards purchasing a diesel particulate filter, new conventionally fueled school bus, hybrid school bus or zero-emission school bus.


► Hybrid & Zero-Emission Truck & Bus Voucher Incentive Project (HVIP) ▼ Hybrid & Zero-Emission Truck & Bus Voucher Incentive Project (HVIP)
  • HVIP is a statewide program that provides vouchers to help offset the incremental cost of eligible hybrid, low NOx engine, hydrogen fuel cell or battery electric 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. Up to $30,000 per battery electric bus or truck is available towards the purchase of charging equipment.

    Fleets can apply for a voucher through an HVIP approved dealership.




► Rural School Bus Pilot Project (RSBPP) ▼ Rural School Bus Pilot Project (RSBPP)
  • The RSBPP is a statewide program administered through the North Coast Air Quality Management District (NCUAQMD) to replace old school buses with new lower carbon transportation choices. $10M is available for FY 17-18. The program gives preference to school districts located in small air districts.

    NCUAQMD will accept applications from June 20, 2018 - August 10, 2018.



► California Energy Commission School Bus Replacement Program ▼ California Energy Commission School Bus Replacement Program
  • The California Energy Commission School Bus Replacement Program provides up to $78.7 million in grant funds for the replacement of the oldest school buses in California. This program emphasizes replacement with electric buses. Priority is to school districts and county offices of education containing disadvantaged communities and with a majority of students eligible for free or reduced-price meals in the prior year.

    The California Energy Commission is accepting applications May 31, 2018 - September 20, 2018.



► AB 617 - Community Air Protection Funds ▼ AB 617 - Community Air Protection Funds
  • $250 M in Community Air Protection Funds are available to support early action emissions reductions in communities most affected by air pollution, first year funds will provide immediate reductions through the Carl Moyer Program. School bus replacements are an eligible project type.

    For more information, contact your local air pollution control district.


► Carl Moyer Program ▼ 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.

    For more information, contact your local air pollution control district.



► Volkswagen Mitigation (Appendix D) ▼ Volkswagen Mitigation (Appendix D)
  • The Volkswagen Environmental Mitigation Trust provides approximately $423 M for California to mitigate excess emissions caused by VWs use of illegal defeat devices. The approved Beneficiary Mitigation Plan outlines there is $130 M available for zero-emission transit, school, and shuttle buses.

    The San Joaquin Valley Air Pollution Control District (SJVAPCD) will administer funding for buses. Funding will be available in two installments starting in the first quarter of 2019, first come first served. SJVAPCD will lead the public process to determine implementation details. Sign up for the VW Environmental Mitigation Trust Email List to receive updates.



► Diesel Emission Reduction Act (DERA) and School Bus Program Rebates ▼ 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. For more information, visit EPAs Clean School Bus Webpage.



► Lower Emission School Bus Program ▼ Lower Emission School Bus Program
  • 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.

    The San Joaquin Valley Air Pollution Control District (SJVAPCD) implements the program statewide on behalf of CARB, prioritizing funding for school districts in the small and medium air districts. For eligible school bus owners, when the application period is open, you can apply for funding directly to the SJVAPCD.


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