California Reopens Zero-Emission School Bus Incentives
The state's Zero Emission School Bus and Infrastructure program opens a second solicitation with at least $55 million available.
Updated on Nov. 3, 2026 in Electric Vehicles
Live Poll
Should local governments offer more incentives for electric vehicles in your area?
The California Air Resources Board and California Energy Commission are reopening the Zero Emission School Bus and Infrastructure incentive program on Tuesday. Maximum incentives now reach $400,000 per bus after a $40,000 per-bus increase made available in spring 2026.
Why it matters
The $40,000 add-on is intended to offset higher production costs for electric school buses after the elimination of the Commercial Clean Vehicle Credit and federal tariff-driven price increases. Applications will be reviewed primarily on a first-come, first-served basis, giving districts in California an incentive to apply early.
Maximum incentives are $320,000 for Type A buses, $380,000 for Type C buses, and $400,000 for Type D buses, with an additional $15,000 for buses equipped with wheelchair lifts. At least $55 million in state funding will be available.
The players
California Air Resources Board
The state agency that jointly administers the Zero Emission School Bus and Infrastructure program and oversees California's air quality and vehicle emission regulations.
California Energy Commission
The state energy agency that co-administers the school bus incentive program alongside the Air Resources Board, focusing on energy policy and clean transportation infrastructure.
Catalyst Mobility
The organization, formerly known as CALSTART, that administers the program's funds on behalf of the state.
The details
Eligible applicants include California public school districts, public charter schools, joint power authorities, and county offices of education, though non-classroom-based charters classified as of fiscal 2021-2022 are excluded. Participation requires scrapping one old school bus for each new zero-emission bus awarded and requesting at least one charger per bus funded.
Timeline
Spring 2026: $40,000 per-bus incentive increase made available.
Thursday (prior to publication): CARB released updated implementation guidelines for the second solicitation.
Tuesday (following publication): The Zero Emission School Bus and Infrastructure project reopens for applications.
Roadmap
The elimination of the federal Commercial Clean Vehicle Credit has raised production costs for electric school buses, and California's added $40,000 per-bus incentive partially offsets that loss. The increase also responds to federal tariffs that have pushed electric bus prices higher.
California school districts and eligible charter schools can now apply for substantial per-bus incentives, but must scrap an old bus for each new electric bus and install at least one charger per funded vehicle. Because awards are primarily first-come, first-served, districts planning fleet purchases have a practical reason to submit applications promptly.
The takeaway
School districts weighing electric bus purchases should review the eligibility rules, scrappage requirement, and charger obligations before applying. Applying early matters because funding is distributed primarily on a first-come, first-served basis.
Further reading
Explore more coverage in the Electric Vehicles section for context on how state incentives are shaping zero-emission fleet adoption.
More information
Get application updates and program information at ZESBI program application updates.
Live Poll
Should local governments offer more incentives for electric vehicles in your area?
