SBF 70 years logo
MenuMENU
SearchSEARCH

California Agency Offers $94 Million for Alternative-Fuel School Buses

The California Energy Commission will award up to $78.7 million to replace aging buses, $13 million for electric vehicle infrastructure, and $2.4 million for CNG fueling infrastructure.

June 14, 2018
California Agency Offers $94 Million for Alternative-Fuel School Buses

The California Energy Commission will award up to $94 million to replace aging school buses with alternative-fuel school buses. File photo

2 min to read


The California Energy Commission will award up to $94 million to replace aging school buses with alternative-fuel school buses. File photo

SACRAMENTO, Calif. — A state agency is making $94 million in grant funds available for the replacement of aging school buses with alternative-fuel buses.

The California Energy Commission’s School Bus Replacement Program will award up to $78.7 million to replace old buses, according to a news release from CalStart, an organization that supports clean transportation technology.

The Energy Commission’s Alternative and Renewable Fuel and Vehicle Technology Program is also offering up to $13 million in grant funds for electric vehicle infrastructure and $2.4 million in grant funds for compressed natural gas (CNG) fueling infrastructure for the replacement school buses.

Proposed projects must be for the purchase of new electric or CNG school buses, and replaced diesel buses must be scrapped and removed from service.

Funding is available for public school districts and county offices of education that operate the oldest buses in California, according to the news release from CalStart. Priority consideration will be given to school buses that operate in disadvantaged communities and to public school districts and county offices of education that have a majority of students eligible for free or reduced-price meals.

The Energy Commission is emphasizing electric school buses as the preferred type of bus replacement under California Senate Bill 110, the Clean Energy Jobs Act. As an incentive, the agency is planning to provide up to $60,000 per awarded bus for electric vehicle charging infrastructure.

School districts and counties of education applying for a CNG replacement bus may also be eligible for up to $500,000 per applicant for CNG fueling infrastructure.

The deadline to submit applications is Sept. 20. More details about the grant are available here.

Ad Loading...

The state's South Coast Air Quality Management District also recently awarded over $35 million to 42 school districts in Southern California to replace a total of 206 pre-1994 diesel school buses with CNG and propane buses.
 

More Alternative Fuels

An orange and yellow graphic with a black and white image of Blue Bird propane school buses.
Alternative Fuelsby Elora HaynesMarch 19, 2026

Alt-Fuel Moves: EV Charging Expansion & Fleet Deployments

From EV charging growth to V2G testing and new bus deployments, districts and providers advance alt-fuel goals amid challenges.

Read More →
Buyers Guide and Directory thumbnail
SponsoredMarch 13, 2026

2026 School Bus Fleet Vendor Directory & Buyer's Guide

Searching for the right equipment, technology, or services for your school transportation program? This industry guide brings together manufacturers and suppliers across the entire school bus market, all in one place. Download it to find the partners who can help move your operation forward.

Read More →
Front view of an IC Bus next generation electric CE Series bus driving on a suburban street.
Alternative Fuelsby Elora HaynesFebruary 27, 2026

EPA Revamps Clean School Bus Program, 2024 Rebates Halted

The EPA will open a 45-day comment period and is planning a March 3 webinar as it reshapes Clean School Bus funding for 2026.

Read More →
Ad Loading...
An orange and yellow graphic with a black and white image of InCharge Energy employees working on the management system platform.
Alternative Fuelsby Elora HaynesFebruary 23, 2026

Alt-Fuel Moves: Funding Boosts & Charging Innovations

Check out some of the latest moves where alternative fuels and school buses intersect, including electric bus and charging deployments, new funding opportunities, and a new management system.

Read More →
School Bus Fleet graphic with green theme and moss sphere image, headline “Greenhouse Gas Standards Update,” subhead “EPA Officially Repeals 2009 Endangerment Finding,” and photo of a yellow school bus driving away.
Alternative Fuelsby Staff and News ReportsFebruary 18, 2026

EPA Officially Rolls Back Federal GHG Standards

The federal administration called its 2009 Endangerment Finding rescission "the single largest deregulatory action in U.S. history." It eliminates greenhouse gas emission standards for all vehicles and engines for model years 2012 to 2027 and beyond.

Read More →
An orgnge, white, and black graphic with a black and white image ofpropane school buses.
Alternative Fuelsby Elora HaynesJanuary 30, 2026

Alt-Fuel Moves: Product Innovations & Funding Outlooks

Check out some of the latest moves where alternative fuels and school buses intersect, including electric and propane bus deployments, new EV products, and an update from CARB.

Read More →
Ad Loading...
SponsoredJanuary 19, 2026

Fleet Software ROI: Transforming School Transportation

Keeping buses safe, reliable, and on schedule requires more than manual processes. This eBook explores how modern fleet software supports school transportation teams with automated maintenance scheduling, smarter video safety tools, and integrated data systems. Discover practical ways fleets are reducing breakdowns, improving safety, and saving valuable staff time.

Read More →
An orgnge, white, and black graphic with a black and white image of electric school buses.
Alternative Fuelsby Elora HaynesJanuary 14, 2026

Alt-Fuel Moves: Manufacturing Growth & Energy Storage Expansion

Check out some of the latest moves where alternative fuels and school buses intersect, including manufacturing expansions, major funding awards, and energy storage strategies.

Read More →
A man connecting a Zenobē charger to a school bus.
ManagementDecember 12, 2025

Electric School Bus Financing: Making Fleet Transitions Operationally Sustainable for the Long Haul

Electric school bus success hinges on long-term planning, which means smart financing, battery management, and service-based models that keep fleets reliable for years.

Read More →
Ad Loading...
An orgnge, white, and black graphic with a black and white detail shot of lights on a school bus.
Alternative Fuelsby Elora HaynesDecember 8, 2025

Alt-Fuel Moves: New V2G Tech and Electric Bus Rollouts

Check out some of the latest moves where alternative fuels and school buses intersect, including new product announcements and bus deployments across the U.S.

Read More →