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Funding and Incentives

Transit Vehicles

Funding and Incentives
  1. Air District
  2. Funding and Incentives
  3. Public Agencies
  4. Transit Vehicles

Air District funding is available to help upgrade transit buses with new, zero-emission vehicles.

How to Apply

Visit the Apply for Funding web page to apply. There are multiple funding sources available for heavy-duty transit buses. After you apply, Air District staff will work with you to match your project with an appropriate funding source.

Eligible Project Types

  • Vehicle Replacement: Replace heavy-duty transit buses with zero-emission vehicles.
  • Infrastructure projects: Install new, convert, or expand existing battery-charging or hydrogen-fueling stations.

Key Eligibility Criteria

  • All projects are subject to the Innovative Clean Transit rule.
  • Public entities are eligible to apply.
  • The vehicles to be replaced and the new vehicles must have a GVWR greater than 14,000 pounds.
  • Vehicles to be replaced and applicants must be in compliance with all Air District and CARB regulations.
  • Funding cannot be used for upgrades or equipment purchases that are already required by an existing regulation, local ordinance, or contract.
  • Applicants must submit an application, be awarded, and enter into a funding agreement with the Air District prior to starting their projects. Projects that have started (e.g., placing an order or deposit for a vehicle) prior to the funding agreement being signed by all parties will be disqualified.
  • Funding is available for electric and hydrogen transit buses and supporting infrastructure. Note that supporting hydrogen infrastructure funding is only available to projects co-funded with the California Energy Commission. 

Grant Contact Information

Please contact the Air District before applying at grants@baaqmd.gov so we can learn more about your project and vehicle replacement timeline.

Funding Sources

The following are funding sources that could be used to fund heavy-duty truck and transit bus projects. If you wish to use a particular funding source for your project, please note so in your application.

Unless otherwise noted, applicants do not need to apply for a particular funding source. After submission of an application, staff will review and match your project with an appropriate funding source.

The following are other funding opportunities available for transit bus projects. If you are applying for Air District funding and pursuing one of these other funding opportunities, please note so in your application.

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Grants Programs Information Request Line, Strategic Incentives

415.749.4994 grants@baaqmd.gov

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Last Updated: 11/7/2023