SBF 70 years logo
MenuMENU
SearchSEARCH

California Finalizes Plan for $423 Million Share of VW Funds

The state earmarks $130 million for electric buses. The mitigation funding is expected to become available starting in early 2019.

Thomas McMahon
Thomas McMahonExecutive Editor
June 29, 2018
California Finalizes Plan for $423 Million Share of VW Funds

California has earmarked $130 million of its VW mitigation funds to replace existing school, transit, and shuttle buses with electric models.

3 min to read


California has earmarked $130 million of its VW mitigation funds to replace existing school, transit, and shuttle buses with electric models.

California’s final plan for its Volkswagen (VW) settlement funds includes $130 million to replace existing buses with electric models.

The earmark for new electric school, transit, and shuttle buses accounts for about 31% of the state’s total $423 million share of the VW Environmental Mitigation Trust. In all, the trust is providing states with $2.9 billion for projects to cut nitrogen oxide from large vehicles.

Ad Loading...

Before states can spend their share of the funding, they have to develop beneficiary mitigation plans and submit them to the trustee, Wilmington Trust N.A.

The California Air Resources Board (CARB) approved the state’s proposed mitigation plan at a public meeting on May 25.

“This is a landmark moment in the saga of Volkswagen’s environmental violations,” CARB Chair Mary Nichols said in a press release. “Over the next 10 years this plan will put in place not only tools to clean up VW’s excess emissions, but also to help achieve further reductions of smog-forming pollution for decades to come.”

On Thursday, CARB submitted its final plan to the trustee and announced that it had been posted online.

As previously noted in the proposed version of California’s plan, the $130 million for electric school, transit, and shuttle buses will include incentives of up to $400,000 for each battery-electric school bus, along with supporting infrastructure. For the school bus incentives, CARB staff recommended a minimum 5% match from the school district or other funding source.

Ad Loading...

According to the plan, half of California's electric bus funding from the VW trust will be made available when the program is established, and the second half will be provided at least two years later.

CARB said that the VW mitigation funding is expected to become available starting in early 2019.

According to the California mitigation plan, about 65% of the state’s fleet of more than 25,000 school buses are fueled by diesel. Close to 4,500 of the older diesel school buses are not equipped with diesel particulate filters or “are nearing the end of their useful life and need to be replaced with cleaner alternatives, such as zero-emission technologies,” the plan says.

Meanwhile, California’s plan for its total $423 million share of the VW Environmental Mitigation Trust also tabs funds to replace heavy-duty trucks and equipment and to reduce emissions at freight facilities, marine projects, and light-duty vehicle charging.

A state Senate bill passed last year mandates that a minimum of 35% of the mitigation investment benefit disadvantaged communities. CARB said that the approved plan invests about 50% of the available funds in those communities.

Ad Loading...

For all states, VW mitigation plan contacts and other information are available at the VW Settlement Clearinghouse, which was launched by the National Association of Clean Air Agencies and the National Association of State Energy Officials.

More Alternative Fuels

Close-up of a person refueling a yellow school bus with propane. The fuel nozzle is connected to the bus's propane fueling port, illustrating an alternative fuel option for school transportation fleets.

With Fuel Volatility Ahead, School Districts Turn to Propane

While diesel prices peaked above $5 this spring, districts with propane autogas-powered fleets paid under $2 per gallon, according to PERC.

Read More →
Graphic announcing the EPA's proposed 2027 heavy-duty engine rule changes, featuring an open school bus engine compartment in the background with the EPA logo and the headline, "The EPA's 2027 Proposal Is Here. What's Changing?" alongside School Bus Fleet branding.
Alternative Fuelsby StaffJuly 11, 2026

EPA Unveils Proposed Changes to 2027 Heavy-Duty Engine Rules

The federal agency has proposed changes to next year’s targets that would eliminate DEF derates, ease warranty requirements, and retain current NOx emissions standards.

Read More →
An orange and yellow graphic with a black and white image of an InCharge Energy technician working and text reading "EV Charging & Infrastructure Gains."
Alternative Fuelsby Elora HaynesJuly 10, 2026

Alt-Fuel Moves: EV Charging & Infrastructure Projects Gain Momentum

The latest developments include new funding, charging infrastructure, utility investments, and fleet technologies designed to support the transition to electric school buses nationwide.

Read More →
Ad Loading...
An orange and yellow graphic with a black and white image of the back end of an electric bus next to charging infrastructure and text reading "Alt-Fuel Moves: Fleets Power Up Beyond the Bus."
Alternative Fuelsby Elora HaynesJune 12, 2026

Alt-Fuel Moves: Fleets Power Up Beyond the Bus

See how districts are pairing electric buses with charging, solar, and V2G technology to cut costs, boost resilience, and unlock new fleet value.

Read More →
Graphic showing a winding road and directional signpost labeled “electric,” “propane,” “biofuels,” and “natural gas” beneath the headline “Where Is EPA Funding Headed?” with School Bus Fleet logo.
Alternative FuelsJune 11, 2026

What the EPA’s Updated Clean School Bus Program Means for Fleet Electrification in 2026 and Beyond

A guide to the EPA’s evolving school bus grants, including how the Trump administration changed funding priorities and how school districts can prepare for future bus purchases.

Read More →
Billy Murphy of Power Innovations International speaks at ACT Expo in front of a display featuring EV charging equipment and a Blue Bird school bus graphic. A text overlay reads “Simplified EV Charging.”
Alternative Fuelsby Amanda HuggettJune 3, 2026

A Solution Helping School Buses Charge Without Major Infrastructure Upgrades

Power Innovations International dishes on its EV charging technology designed to reduce infrastructure barriers, improve reliability, and support V2G applications for school bus fleets.

Read More →
Ad Loading...
Promotional graphic announcing New Eagle's OpenECU platform. A blue electronic control unit (ECU) is featured against an orange background with EV charging stations and charging cables. The image includes the New Eagle and OpenECU logos, a "New Product" label, and School Bus Fleet branding.
Alternative FuelsJune 2, 2026

New Eagle Launches All-in-One EV Control Platform

The new OpenECU NX3 platform integrates charging and vehicle controls into a single platform, with support for megawatt charging and vehicle-to-grid technologies.

Read More →
Children board a yellow electric school bus from Central Consolidated School District during snowfall, as an adult assists students at the bus entrance.

GreenPower Unveils New Heating Solution for Type A Bus

The all-electric bus manufacturer's new product aims to eliminate cold-cabin issues on its Nano BEAST zero-emission school buses operating in cold climates.

Read More →
An orange and yellow graphic with a black and white image of an electric bus charger and text reading "Alt-Fuel Moves: Fleets Plug In For the Long Haul."
Alternative Fuelsby Elora HaynesMay 22, 2026

Alt-Fuel Moves: Fleets Plug In for the Long Haul

School districts across the U.S. are moving electric school bus plans into operation, with new fleet deployments, charging infrastructure, and long-term electrification partnerships taking shape.

Read More →
Ad Loading...
Thumbnail graphic for a School Bus Fleet interview at ACT Expo featuring a smiling BetterFleet executive seated in front of a fleet technology booth display. Overlay text reads “BetterFleet” and “The G Problem in V2G.”
Alternative Fuelsby Amanda HuggettMay 22, 2026

The Achilles Heel of School Bus Electrification: BetterFleet’s Take

BetterFleet’s managing partner discusses AI-powered EV fleet management, vehicle-to-grid challenges, and the real challenges in bus electrification today, from ACT Expo.

Read More →