California has reopened its Zero-Emission School Bus and Infrastructure (ZESBI) incentive programme, making at least $55 million available to help school districts purchase electric school buses and install charging infrastructure.
The second funding round combines incentives for vehicles and charging equipment through a single application process. Funding will be distributed to eligible local educational agencies on a first-come, first-served basis.
The programme is jointly funded by the California Air Resources Board (CARB) and the California Energy Commission (CEC), with Catalyst Mobility, formerly known as CALSTART, responsible for administering the grants.
Applications Open in November
The pre-application period began on November 3, allowing eligible applicants to create accounts and prepare the required documentation. Formal applications will be accepted starting November 17 at 10:00 a.m. Pacific Time.
Under the programme requirements, school districts must request at least one charging unit for every electric school bus included in their applications. The combined approach is intended to ensure that vehicle purchases are supported by the infrastructure needed for daily operations.
Successful applicants can receive up to an additional $40,000 for each approved electric school bus. The supplementary incentive is designed to help address higher vehicle procurement costs following the elimination of the US federal Commercial Clean Vehicle Credit under Section 45W, as well as additional expenses associated with federal tariffs.
Funding Also Covers Supporting Infrastructure and Operations
Beyond bus purchases and charging equipment, the programme allows recipients to allocate up to 10% of their grant awards to other school transportation programme expenses.
Eligible costs include workforce training, technical assistance, bus and charger repairs, workshop equipment and improvements to transportation yards.
The broader funding eligibility is intended to help school districts manage the operational requirements of transitioning from conventional school buses to electric fleets.
Rachel Chard, senior director of bus programs at Catalyst Mobility, said the new funding round reinforces the programme’s commitment to expanding clean transportation in communities affected by poor air quality.
This new round of ZESBI funding, alongside the extra $40,000 funding opportunity, reinforces our partnership’s lasting commitment to delivering clean transportation technologies to communities disproportionately impacted by poor air quality.
California Builds on Previous Electric Bus Investment
California initially launched the ZESBI programme in 2024 with a funding allocation of $500 million to support the replacement of approximately 1,000 school buses with zero-emission vehicles.
In April 2025, the state announced that 133 educational agencies had been selected to receive grants under the first funding round. The awards included incentives of up to $375,000 to replace existing buses, alongside financial support for charging infrastructure.
The latest round continues California’s efforts to accelerate the transition to electric school transportation while addressing the financial and infrastructure challenges faced by local school districts.
By combining vehicle incentives, charging investments and operational support, the programme aims to make electric school bus adoption more accessible, particularly for communities disproportionately exposed to air pollution.