Bus Replacement Grant

The California Air Resources Board (CARB) offers grants for the purchase of new zero-emission buses to replace old gasoline, diesel, compressed natural gas, or propane buses. Grants awards vary based on vehicle type and are available in the following amounts:

Vehicle Maximum Grant Amount
Electric Transit Bus $180,000
Fuel Cell Transit Bus $400,000
Electric School Bus $400,000
Electric School Bus (CARB non-compliant) $380,000
Electric Shuttle Bus $160,000

Non-compliant school buses are vehicles that are not compliant with the CARB Truck and Bus Regulation. Eligible applicants include owners of transit, school, and shuttle buses. Grants are awarded on a first-come, first-served basis. The program is funded by California’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including funding availability, see the CARB’s Volkswagen Settlement website.

Jurisdiction: California

Type: State Incentives

Technologies: EVs, Hydrogen Fuel Cells, PHEVs

See all California Laws and Incentives.