Grants and Incentives
Within California there are several state and local incentive programs available for districts looking to accelerate their transition to electric school buses. See below for more information on the major programs throughout the state.
Government Incentive Programs
The California Energy Commission's Electric Program Investment Charge (EPIC) Program funds applied research, technology deployment, and market facilitation to create new energy solutions and bring clean energy ideas to the marketplace. EV bus manufacturers and smart charging management companies serve as lead applicants, while participating school districts can access substantial resources for EV charging infrastructure and related smart charging systems.
Carl Moyer Program
The Carl Moyer Program is administered by the California Air Resources Board (CARB) and funds cleaner-than-required engines and equipment, including electric school buses. About $60 million in funding is administered annually through local AQMDs
Low Carbon Fuel Standard
The Low Carbon Fuel Standard Program (LCFS) issues credits for using zero-emission or alternative fuel vehicles. Credit prices can vary widely depending on market conditions and have recently been in the range of $100 to $185 per avoided metric ton of C02 (MTCO2)
Hybrid Vehicle Incentive Program
Currently administered by CalSTART, the HVIP provides grant funds of up to $235,000 per bus for electric school fleets, in varying amounts according to the type of bus and manufacturers’ suggested retail price (MSRP). Additional HVIP incentive funds are available to projects within low-income and disadvantaged communities ranging from $5,000 to $15,000 per vehicle
EPA Clean School Bus Program
The Clean School Bus Program is a federal program administered by the EPA and funded through FY 2026. Using funds from the Bipartisan Infrastructure Law, the program has $5 billion to replace existing school buses with zero-emission and low-emission models. $500 million will be made available as a first round of funding for 2022, and applications will be accepted into August.
The Energy Infrastructure Incentives for Zero-Emission Vehicles (EnergIIZE) project is a part of California's effort to transition all medium and heavy-duty vehicles to zero emission by 2045. EnergIIZE is administered by CALSTART through a $50 million block grant from the CEC, awarded for Clean Transportation Program funding. Beyond CALSTART and the CEC, funding is overseen by Tetra Tech and Grid Alternatives. Funds are allocated to assist the communities most impacted by pollution.
Coordination with electric utilities is critical to site planning and infrastructure deployment, and many utilities have programs in place to help ease the process of transportation electrification. In California, PG&E, Southern California Edison, and SMUD all provide financial incentives for fleet electrification