Eligibility & Participation
Is ZESBI still accepting applications?
ZESBI is currently closed. ZESBI’s first application window opened on May 14, 2024, at 10:00 am Pacific Daylight Time and closed on September 30, 2024, at 5:00 pm Pacific Daylight Time. ZESBI’s second application window opened on October 8, 2024, at 10:00 am Pacific Daylight Time and closed on November 22, 2024, at 5:00 pm Pacific Standard Time.
Who is eligible to apply?
All Applicants must serve students within the K-12th grade levels.
Eligible entities include:
- California Public School Districts
- California Public Charter Schools*
- California Joint Power Authorities (JPAs)
- California County Offices of Education (COEs)
*Charter schools classified as a non-classroom-based charter school as of FY 2021-22 are not eligible entities.
Private Schools are not an eligible entity.
Public school districts in California that own their own school buses are eligible to participate. This includes public school districts that own their school buses but contract with a COE or private contractor for maintenance and operations. Where two or more public school districts have formed a JPA, and the JPA holds ownership of the school buses, the JPA is eligible to participate. JPAs may use their highest priority criteria school district to serve as the basis for eligibility. Public charter schools that own their own school buses and COE that own their own school buses are also eligible to participate.
Is there an up-to-date list of eligible costs for the ZESBI Incentive Project?
Yes. Please see the ZESBI Eligible Costs for a list of eligible zero-emission school bus, infrastructure and school transportation program costs.
Vehicle Incentives
What are the zero-emission school bus incentive amounts?
Incentive amounts, as shown in the table below, intend to cover nearly, if not all, the full cost of a new zero-emission (ZE) school bus.
Maximum Incentive Amounts
| School Bus Type | Without a wheelchair lift | With a wheelchair lift |
|---|---|---|
| Type A | $280,000 | $295,000 |
| Type C | $340,000 | $355,500 |
| Type D | $360,000 | $375,000 |
To view ZESBI eligible ZE school buses and their respective incentive amounts, visit the HVIP Vehicle Catalog.
Which school bus makes and models qualify for ZESBI?
To view ZESBI eligible ZE school buses and their respective incentive amounts, visit the School Bus section of the HVIP Vehicle Catalog. The grantee is responsible for selecting a school bus from an HVIP approved dealer.
Infrastructure Incentives & Requirements
Is funding available for charging infrastructure?
Eligible Applicants who apply for ZESBI will be eligible for two awards: one for new zero-emission school bus(es) and one for the supporting infrastructure and associated costs. Local educational agencies (LEAs) can receive up to one ZESBI-funded charger for each ZESBI-funded bus that is awarded. LEAs cannot receive infrastructure funding without a ZESBI-funded school bus.
What are the infrastructure incentive amounts?
Maximum Award Amount Per Charger
| Charger Type | Maximum Infrastructure Amount |
|---|---|
| Level 2 (L2) | $20,000 |
| Direct Current Fast Charger (DCFC) or Bidirectional DCFC* | $75,000 |
* An Incentive Recipient will be eligible for up to $95,000 for the first bidirectional DCFC requested. All remaining bidirectional DCFC requested after the first bidirectional DCFC will be eligible for up to $75,000 each.
Example: If an Applicant requests three zero-emission school buses, and three bidirectional DCFC ($95,000 + $75,000 x 2), the Applicant would be eligible for a maximum infrastructure award amount of $245,000.
If an Applicant requests fewer chargers than electric school buses, can the infrastructure incentive amount be based on the total number of buses?
No. Infrastructure incentives are based on the total number of chargers requested. For example, if an Applicant requests four (4) electric school buses and only two (2) chargers, their infrastructure incentive would be for a maximum of two (2) chargers. Applicants are encouraged to stack infrastructure funds with eligible sources of outside funding, such as utility and local air district programs.
Can an Applicant receive infrastructure funding without purchasing a charger?
No. For every (1) ZESBI awarded school bus, Applicants can receive up to (1) ZESBI awarded charger. The amount of the infrastructure incentive is determined by the type of charger an Applicant selects (see the Infrastructure Incentive Amounts table). If an Applicant opts out of purchasing a charger, then they become ineligible for funding that could apply to associated infrastructure costs.
Is Direct Labor an eligible ZESBI cost?
No. Although LEAs may employ internal staff to contribute to the project, direct labor is ineligible for reimbursement.
School Transportation Program Incentives
Can an Applicant receive school transportation program incentives without requesting infrastructure funding?
Yes. Under the ZESBI program, at least 90 percent of the total ZESBI award (which includes incentives for zero-emission (ZE) school buses, infrastructure, and the school transportation program) must be used for ZE school bus and infrastructure expenses. Up to 10 percent of the total award may be used for school transportation program costs or additional eligible infrastructure costs.
If an Applicant does not request infrastructure funding, they may still receive school transportation program incentives. However, the amount of school transportation program incentives will be limited to no more than 10% of the total ZESBI award.
Can the School Transportation Program incentives cover costs related to application assistance?
Eligible ZESBI costs must be incurred within the effective date of an Incentive Recipient’s Grant Agreement Term. Therefore, application assistance is not eligible for reimbursement.
Application Process & Documentation
What are the Applicant prioritization factors?
Applicants will be prioritized according to the following tiers:
Tier 1 – Applicants defined as a small school district, or rural school district, or a local educational agency (LEA) serving a high percentage of unduplicated pupils. (The LEA’s count of unduplicated pupils is 80 percent or greater of the total district enrollment as reported in CALPADS 2022-23 Fall Submission 1).
Tier 2 – Applicants that serve Disadvantaged Communities and/or Low-Income Communities
Tier 3 – All remaining eligible Applicants located in the State of California
Applicants within each tier will be ranked based on the timestamp of submission of their complete Application Part A. Applications will be awarded on a first come, first served basis. The timestamp on any application that is missing materials or otherwise deemed incomplete will not be recorded until all application materials are submitted.
Who completes the ZESBI application?
ZESBI requires that the eligible local educational agency (LEA) complete all steps in the application process.
When is a purchase order required?
Upon approval of Application Part C – Step 1, a grant agreement will be issued to the Applicant. After the grant agreement is fully executed, the Applicant will have 10 business days to sign and submit a purchase order or other binding agreement for the new school bus(es).
What must be included on a purchase order?
All purchase orders submitted must include the following:
- The make and model of each zero-emission school bus, including if the school bus is equipped with a wheelchair lift.
- The itemized cost of each school bus
- The grant award amount applied to each school bus.
- The agreed upon delivery date for each new zero-emission school bus.
- A liquidated damages clause for late deliveries, as follows, “For every date after [insert delivery date agreed upon by the Grantee and HVIP Approved Dealer], in which a school bus has not been delivered as specified in the contract, [HVIP Approved Dealer name] shall be liable to [Grantee name] for the liquidated damages in the amount of $100 per day per school bus purchased with funds from ZESBI.”
- A liquidated damages clause for zero-emission school buses that do not pass CHP inspections as follows: “Should the school bus fail its CHP inspection after delivery, for every date after delivery until the date the repaired school bus is returned to the [Grantee name], the [HVIP Approved Dealer Name] shall be liable to [Grantee name] in the amount of $100 per day per school bus purchased with funds from ZESBI.”
- Acknowledgement that the amount due on the purchase order is due within 60 days after the new zero-emission school bus has passed CHP inspection. Purchase orders that allow payment after 60 days of the new zero-emission school bus passing CHP inspection are acceptable if both the Grantee and HVIP approved dealer agree upon the terms of extended repayment.
How will the ZESBI Team contact applicants?
It is imperative to the success of your project to provide timely responses to the ZESBI Team. The quicker Applicants can resolve questions and/or document corrections, the quicker projects can move forward. Applicant correspondence from the ZESBI Team is sent from the CALSTART School Bus Team (schoolbusteam@calstart.org). Please make sure to add this contact to your email to ensure you do not miss any correspondence.
If at any stage in the ZESBI application or funding process, an Applicant ceases to respond to CARB or its administrators for a period beyond 10 business days, funding may be cancelled and reallocated to another Applicant.
What is the process for requesting an extension or cancellation?
The process for requesting an extension or cancellation can be found in the ZESBI Extension and Cancellation Policy.
Technical & Compliance
What are the requirements for the old school bus(es) that must be scrapped?
The old school bus can be any internal combustion engine using any fuel type (gasoline, diesel, propane, or compressed natural gas) and meets the following:
- The school bus chassis must be a 2010 model year or older. The school bus chassis age is verified by the model year listed on the DMV Registration Form.
- The Applicant must own the school bus. The school bus cannot have a lienholder listed on the DMV Registration Form.
- The school bus must have a gross vehicle weight rating (GVWR) greater than 10,000 pounds. School bus(es) with a GVWR of exactly 10,000 pounds or less than 10,000 pounds are not eligible.
- The school bus must have a current California Highway Patrol Safety Certification (CHP 292 or equivalent) at the time of Application Part A submission. A non-certified school bus will not be able to continue within the application process.
- If the school bus is diesel-fueled and greater than 14,000 pounds GVWR, it must be compliant with the California Truck and Bus Regulation to receive a full incentive amount. In cases where the old school bus is not compliant, a $20,000 incentive deduction will be applied per non-compliant school bus. Review the School Bus Fact Sheet on the Truck & Bus Regulation for detailed information: Truck & Bus Regulation – School Bus Requirements (ca.gov). Applicants will be asked to provide a self-certification that the school bus(es) are compliant. To maintain compliance with the CA Truck and Bus Regulation, school buses must have a diesel particulate filter (DPF) installed or operate less than 1,000 miles per calendar year (low use).
Why should I remove the lienholder on my DMV Registration Form?
A lienholder will not prevent an eligible Applicant from applying, however it can slow down the approval process significantly and, in some cases, can even prevent an Applicant from receiving funding. Removing the lienholder can be a time-consuming process. Please refer to the State of California Department of Motor Vehicles website to learn more.
Do I need to keep the old school bus(es) California Highway Patrol Safety Certification (CHP 292) certified?
The old school bus must have a current California Highway Patrol Safety Certification (CHP 292 or equivalent) at time of Application Part A submittal. A non-certified school bus cannot continue within the application process.
What are the Vehicle-to-Grid (V2G) requirements?
New school buses must have Vehicle-to-Grid (V2G) functionality via use of type 1 combined charging system (CCS). This enables the new bus to engage in bidirectional charging capabilities such as storing and discharging electricity at a rate of at least 60 kW, though there is no specific requirement for the purchaser’s utilization of this technology.
What is the process for an EV charger to be added to the Approved Products List (APL)?
If an EV charger complies with the Requirements for EV Supply Equipment (EVSE) outlined in Section 7.2 of the CEC’s ZESBI Implementation Manual, the charger provider may fill out this Equipment Intake Form and email it with supporting documentation to the CALSTART School Bus Team at schoolbusteam@calstart.org.
Upon receipt of the completed form, the School Bus Team will review the request and, if eligible, proceed with adding the new equipment to the ZESBI Approved Product List. Please note, to be eligible for ZESBI incentives, EVSE must be on the APL at the time the cost of the EVSE is incurred.
What regulations may apply to my ZESBI project or LEA?
Assembly Bill 579 establishes the State of California’s goal for all new school buses purchased or leased in California to be zero-emission beginning in 2035. In addition, applicants should also be aware of several additional regulations that govern project eligibility and compliance.
Key regulations affecting school bus fleets include compliance with the California Truck and Bus Regulation for diesel-fueled school buses over 14,000 pounds GVWR to qualify for incentives. Applicants must also submit a self-certification of compliance and, when applicable, provide a Clean Truck Check Compliance Certificate. Additional details on these requirements are available in Section 4.1 and Section 5.4 of the CARB ZESBI Implementation Manual.
Charging infrastructure must meet regulatory requirements, including certification under the Electric Vehicle Infrastructure Training Program (EVITP), as required by AB 841. Data collection requirements are outlined in AB 2061. Additional compliance related to installation partners and signage is detailed in Sections 7.5 and 8.3.4 of the CEC ZESBI Implementation Manual.
Applicants should consult these resources and other applicable state and local guidance to ensure full compliance with all regulations.
What technical assistance services are available?
Through our Cal Fleet Advisor program for zero-emission school buses, we can offer free technical assistance to help plan your next steps in school bus electrification and infrastructure installation. Our services include funding research, clarifying incentives, eligibility analysis, and application assistance. Other resources include relationship building referrals with utilities, OEMs, vendors and peers.
Get started by filling out the contact form. After your form is submitted, Cal Fleet Advisor will reach out to discuss how we can support your school bus fleet.
ZESBI Incentive Recipients can also use Infrastructure funds and School Transportation Program funds to procure additional technical assistance services.
Funding Stacking & Financial Resources
What other programs can be stacked with ZESBI funding?
Generally, funds administered by local air districts or local municipalities, such as AB 923 funds, may be combined with ZESBI funding. Applicants may stack ZESBI funding with certain state funds only if the local education agency (LEA) has a small fleet. Some federal funding may be stacked with ZESBI. If an Applicant chooses to stack with another incentive program, the LEA is responsible for ensuring that the other incentive program allows stacking with ZESBI and that all requirements of ZESBI and the other program are met.
ZESBI can be stacked with these funding programs administered by local air districts or federal entities with no restrictions on fleet size. Examples of stackable local and federal programs include:
- Federal Diesel Emissions Reductions Act State Grants or Rebates
- AB 923 Funds
- Sacramento Metropolitan AQMD’s Sacramento Emergency Clean Air & Transportation Grant Program (SECAT)
- South Coast AQMD’s Mobile Source Air Pollution Reduction Review Committee (MSRC) grants
- Bay Area AQMD’s Mobile Source Incentive Fund and Transportation Fund for Clean Air
ZESBI funding may be stacked with these state-funded incentives administered by local air districts only if the LEA has a fleet size of 20 vehicles of fewer:
- Carl Moyer Memorial Air Quality Standards Attainment Program (Carl Moyer Program)
- Community Air Protection Incentives to Reduce Emissions in AB 617 Communities
For questions regarding stacking eligibility, please contact our School Bus Team at schoolbusteam@calstart.org.
Can ZESBI be stacked with EPA programs?
ZESBI funding cannot be stacked with either the EPA Clean School Bus Program or the EPA Clean Heavy-Duty Vehicles Program.
What other financial resources can I take advantage of?
ZESBI participants may utilize the Department of General Services (DGS) Statewide Procurement Contract (Bulletin #: K-73-23). The Statewide Procurement Contract includes zero-emission school buses Type A, Type A with a cutaway chassis, Type C and Type D. Use of the DGS Statewide Procurement Contract is encouraged but not required to receive ZESBI funding. To learn more about this opportunity, please go to: https://californiahvip.org/wp-content/uploads/2024/04/DGS-Statewide-Contract-Guide-Final.pdf
ZESBI participants may combine ZESBI funding with United States Internal Revenue Service (IRS) Tax Credits, such as the Qualified Commercial Clean Vehicle Credit. Tax-exempt organizations that buy a qualified commercial clean vehicle may qualify for a clean vehicle tax credit of up to $40,000 under the Internal Revenue Code (IRC) 45W. The tax credit is available for the year that the vehicle is put in service. The tax credit is for qualified commercial vehicles acquired after December 31, 2022, and before January 1, 2033. For more information, please visit https://www.irs.gov/credits-deductions/commercial-clean-vehicle-credit.
ZESBI participants can also claim up to a $100,000 tax credit for infrastructure through the Alternative Fuel Vehicle Refueling Property Credit (IRS Section 30C). For more information, please visit: Alternative Fuel Vehicle Refueling Property Credit | Internal Revenue Service (irs.gov) or contact the IRS directly.
Installer Information
How do I find a ZESBI project approved installer?
You can refer to the ZESBI Installation Partner List to find contractors who may help Applicants identify experienced professionals familiar with ZESBI project requirements.
ZESBI Installation Partner List
Please note an Applicant is not required to select a vetted ZESBI Installation Partner to perform installation work onsite; the ZESBI Installation Partner List is intended to be a helpful resource.
Is my LEA required to use an installer on the ZESBI Partner List?
An Applicant is not required to select a vetted ZESBI Installation Partner to perform installation work onsite. The ZESBI Installation Partner List is intended to be a helpful resource to ZESBI applicants.
How do I become a ZESBI project approved installer?
To become a ZESBI Installation Partner, you’ll need to comply with specific project requirements as outlined in Section 7.4 and 7.5 of the California Energy Commission’s ZESBI Implementation Manual. If the installer meets the requirements outlined in CEC’s ZESBI Implementation Manual, the installer must complete the Installation Partner Intake Form and submit it, along with all required supporting documentation, to the CALSTART School Bus Team at schoolbusteam@calstart.org for review.