School Buses

The Air District’s School Bus Program aims to reduce children’s exposure to harmful diesel bus emissions.

The Air District is currently accepting applications for public school bus projects. Funding is offered on a first-come, first-served basis until all funds have been spent. 

Applications must be complete to be considered for funding. Four sources of incentive funds are available: the Carl Moyer Program (CMP), the Community Health Protection Program, the Transportation Fund for Clean Air (TFCA), and the Mobile Source Incentive Fund (MSIF).

Project Types

 Funds are available for the following project types:

  • Bus replacement - replace public school buses with new electric and low-NOx compressed natural gas (CNG) buses. Other fuel types may be considered on a case-by-case basis.
  • Engine retrofit - install an emission control device (case-by-case only).
  • Fleet expansion – purchase public school electric buses without the need to scrap an older bus. Applicants considering this option are encouraged to contact us prior to applying as funding is available on a case-by-case basis only.
  • Install fueling infrastructure - install or expand electric and alternative fuel infrastructure to fuel school buses (see below for details).

Battery Charging and Fueling Infrastructure

Eligible applicants deploying new electric and alternative fuel school bus(es) may also apply for grants to install, convert, or expand battery charging stations, natural gas fueling stations, and hydrogen fueling stations.

Maximum Percentage of Eligible Costs Infrastructure Project Type
100% and alternative fueling Public school bus – battery charging

Eligible costs of infrastructure projects include costs of design and engineering, equipment (e.g. charging/fueling units, energy storage equipment, on-site power generation*), installation directly related to the project, and meters or data loggers. Eligible projects must comply with all applicable laws, be located within Air District jurisdictional boundaries for use by buses operating in the Bay Area, and meet site ownership, equipment specification, and other CMP and Air District requirements. 

*Projects with on-site power generation are funded at a maximum of 65-75% of eligible costs. For projects with on-site power generation, at least 50% of the energy provided by the project must be generated from wind or solar power.

For additional details about project options and funding amounts see Additional Information section (below) or the School Bus Project Fact Sheet.


The following organizations are eligible for funding:

  • Bay Area public school districts that own their own buses, including under the provisions of a Joint Powers Agreement, may apply for all project types.
  • School transportation companies that provide services under contract to Bay Area public school districts, public charter schools, and county offices of education may apply for all project types (under CHPP and TFCA funding only).
  • Non-profit agencies, private schools, and other private companies are NOT eligible for funding under this program.
  • Applicants for school bus projects that are not eligible under this category may be eligible for bus replacement and other project types under the CMP On-Road Heavy-Duty Vehicle category.

School buses must transport public school students (grades K-12) to and from school, or for school-sponsored activities, within the Air District’s boundaries.

Applications are accepted for school bus projects within the Air District’s boundaries, and the Air District may prioritize projects operating in areas highlighted in the Priority Community Map or Community Health Protection corridors that result in significant emissions reductions. Contact our staff if your fleet operates within these priority areas.

Co-Funding with Other Incentives

Additional funding may be available for your school bus project. Private fleet owners may co-fund up to 95 percent of eligible costs and public fleet owners may co-fund up to 100 percent of eligible costs by matching additional funds from other incentive programs. Non-state co-funding sources may be available to cover the private fleet match portion. Co-funded projects must meet the requirements for each funding source.

Incentive programs change frequently – more information is available on the CARB Truckstop Website.

General Project Requirements

  • Applicants are required to document at least 24 months (prior to application) of equipment ownership, mileage/usage, California DMV registration, CHP safety inspections and insurance.
  • Public school districts are required to submit a school board resolution approving the proposal and funding for the project. Specific language about zero-emissions equipment options must be included – contact our staff for this required text. 
  • Funded projects must result in emissions reductions that are surplus (extra) to existing regulations, laws, ordinances, and agreements; incentives cannot be paid to bring a fleet or equipment into compliance. Emission credits from funded Carl Moyer Program projects may not be used by a fleet owner for compliance until deadlines established by CARB have passed.
  • All projects selected for funding must comply with inspection and audit requirements of the current CMP Guidelines. Payment of the grant will occur only after verification that the project complies with all CMP requirements.
  • Baseline (old) equipment must be destroyed/scrapped at the time of project completion; projects must use only Air District Certified dismantlers for the scrapping of equipment.
  • Grants are not paid for purchases or work completed prior to Air District execution of the grant agreement (contract) for the project. Starting work or ordering equipment prior to execution of the contract will VOID the project and funding will be cancelled.
  • Case-by-case consideration of special projects or guideline exceptions must be approved by the California Air Resources Board in compliance with current CMP Guidelines.
  • Replacement equipment must be purchased, not leased (use conventional financing).
  • The Air District will file a Uniform Commercial Code-1 Financing Statement (lien) for school bus projects at the time of grant payment, applicable for the duration of the project term.
  • All projects paid a grant are required to operate funded equipment according to terms of the program requirements or signed grant agreement (contract).
  • All projects paid a grant may be required to submit annual reports to the Air District.

How to Apply

  1. Determine your fleet’s eligibility for this program.
  2. Identify the project type for your bus.
  3. Gather the required information about your current bus and replacement bus.
  4. Contact Air District staff with any questions you may have, including retrofit applications and special project requests. 
  5. Apply online at

Workshops and Events

Watch the Air District co-hosted webinar “Stack Incentives and Maximize Funding to Jumpstart Your School’s Electric Bus Fleet” for information on transitioning your school bus fleet to electric.

View the Calendar for upcoming workshops, events, and deadlines.

School Bus Regulatory Information

CARB's Truck and Bus Regulation requires existing on-road diesel vehicles, including school buses, that operate in California to be upgraded to reduce emissions. It is the school bus owner's responsibility to understand the requirements of the CARB regulation and how the regulation affects their fleet. The awarding of a School Bus Incentive grant in no way extends any regulatory compliance deadline. Participation in the Carl Moyer Program requires that school bus fleets report to and be compliant with the Truck & Bus Regulation and document the Fleet Summary and Fleet List as part of the grant application.

Additional Information

Contact Us

Kenneth Mak
Supervising Staff Specialist, Strategic Incentives


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Last Updated: 11/23/2021