Eligible Costs – Zero-Emission School Bus and Infrastructure

Applications are closed. Projects are underway.

Please see ZESBI Eligible Costs for a comprehensive list of eligible ZE School Bus, Infrastructure, and School Transportation Program costs.

Zero-Emission School Buses

The HVIP Vehicle Catalog includes approved zero-emission Type A, Type C, and Type D models offered by school bus manufacturers. Type A buses are smaller and typically used for shorter routes, while Type C buses are larger with greater capacity, designed for longer routes. Type D buses provide the most seating and space for high-capacity routes. All models have wheelchair lifts available for student accessibility.

Infrastructure

Local educational agencies (LEAs) can receive up to one ZESBI-funded charger for each ZESBI-funded bus that is awarded.

Level 2 chargers are ideal for overnight bus charging and may be a more cost-effective option for LEAs. Direct current fast chargers (DCFC) provide faster charge times at higher voltage, and bidirectional DCFC enables a school bus to deliver power back to the grid, facilities or other assets.

Eligible infrastructure costs covered by ZESBI are divided into three categories: equipment procurement, equipment installation, and other. “Procurement Costs” and “Installation Costs,” as shown below, must be fully covered before “Other Costs” become eligible.

ZESBI does not currently provide incentive awards toward costs outside of those outlined in the following section.

Procurement Costs

EVSE, including L2 and DCFCs
One-time network and software costs for at least the term of the agreement or at most six years after commissioning
Equipment capable of V2G bidirectional charging (eligible but not required)
Zero-emission mobile chargers
1. An Applicant must provide sufficient information as to why a mobile charger is needed (example: utility delay) for this to qualify under the Procurement rather than the Other Costs category.
2. A mobile charger cannot replace a permanent charger(s).
3. An Applicant must be able to verify that costs for permanent chargers and installation will be fully covered before spending funds on a mobile charger.
4. Non-zero emission generators are not allowed for the purpose of powering mobile chargers procured with ZESBI funds.
Sales tax
1. Related to the purchase of procurement costs up to the maximum grant amount

Installation Costs

Project management
Site design
Site upgrades (transformers, breakers, stub outs, switchgear, meter mains, and circuit breaker panels)
1. Utility service upgrades and stub outs are allowable for future EVSEs.
2. Utility programs that reimburse service upgrades and integration costs may be utilized for ZESBI projects but are not eligible to be reimbursed with ZESBI funds.
Technical assistance
1. Consulting services including but not limited to:
  1. Vehicle/charger selection
  2. Infrastructure design
  3. Electric utility connections
  4. Fleet operation and maintenance
2. Please note, compliance planning assistance for the Advanced Clean Fleets Regulation is not an eligible expense under ZESBI.
Sales tax
1. Related to the purchase of installation costs up to the maximum grant amount

Other Costs

ZE distributed energy resources, such as battery energy storage systems (BESS) and/or solar photovoltaics (PV)
Baseline product warranty (included with product) or extended equipment product warranty for up to six years post commissioning
Zero-emission mobile chargers
Sales tax
1. Related to the purchase of other costs up to the maximum grant amount

*Incentive awards for eligible “Other Costs” shall only be paid once, after site commissioning, with the final invoices. Monthly service fees are not eligible for incentives through ZESBI.

For more information, See page 20 of the CEC’s ZESBI Implementation Manual.

School Transportation Program Incentives

An Incentive Recipient can spend up to 10 percent of its grant award on its School Transportation Program but is not required to spend any of its grant award on its School Transportation Program.

The School Transportation Program incentives can only be used to supplement not supplant expenses from an Incentive Recipient’s transportation department. It cannot be used to supplement any other area or department. 

School Transportation Program incentive awards may be used to cover other eligible infrastructure costs instead of eligible School Transportation Program costs.

All costs must be incurred within the Effective Date of an Incentive Recipient’s Grant Agreement Term. Please see page 23 of CEC’s ZESBI Implementation Manual for more information.

Eligible costs include:

Transportation Department	Eligible costs include, but are not limited to:
Planning and Technical Assistance	Fleet Electrification Plans
Infrastructure	Charger Upgrades/Repairs Fuel Costs (electricity or hydrogen only)
Transportation Vehicles (Owned & Operated by the Incentive Recipient)	ZE School Bus Parts and Tires ZE School Bus Repairs (outside warranty) Charging Management/V2G Management Services ZE School Bus Maintenance Contracts
Transportation Yards	New Fencing/Re-fencing New Pavement/Re-pavement
Transportation Department Buildings	Flood Lights Office Equipment (Computers, Printers, Software) Security Cameras and Systems
Transportation Department Electrical System	Electrical System Upgrades to Transportation Yards (transformers, breakers, stub outs)
Transportation Department ZE Workforce Training	Incentive Stipends for Completion of the CEC’s Electric School Bus Training Program. Maximum amount per person will be determined at a later date. Maintenance Equipment Used for Training Mileage Reimbursement for In-Person Training Technician Staff Training (Beyond Electric School Bus Training Program)
Transportation Shop Equipment	Auto Repair Machinery for ZE School Buses Auto Repair Tools for ZE School Buses EVSE/Diagnostic Equipment High Voltage Safety Equipment/ Supplies for ZE School Buses

If an Incentive Recipient would like to cover a cost not listed above, they will need to seek individual approval prior to incurring the cost. Please contact schoolbusteam@calstart.org.