U.S. Department of Energy | Office of Energy Efficiency and Renewable Energy U.S. Department of Energy Office of Energy Efficiency and Renewable Energy

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 $216,000
Fuel Cell Transit Bus $480,000
Electric School Bus $400,000
Electric School Bus (CARB non-compliant) $380,000
Electric Shuttle Bus $192,000

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.