Project Background for HVIP Public School Bus Set-Aside
Contact
Project Goals
Transforming the State school bus fleet to zero-emission is an important component to achieving California’s air quality and climate change goals. The Public School Bus Set-Aside aims to replace some of the oldest, highest polluting internal combustion school buses operating in the state, with new ZE school buses. HVIP Public School Bus Set-Aside is designed to provide funding to historically underserved rural communities. Funds go towards the replacement of older internal combustion engine school buses with new ZE school buses for eligible applicants located in small and medium sized air districts.
Guiding Legislation/Policy Drivers
AB 1279 (Muratsuchi, Chapter 337, Statutes of 2022) established the State’s science-based policy to achieve carbon neutrality as soon as possible, but no later than 2045. The California Air Resources Board’s 2022 Scoping Plan Update lays out a comprehensive path to achieve the targets set in in AB 1279 and acknowledges that transitioning the transportation sector to zero-emission is pivotal to achieving the goals of AB 1279. Further acknowledging the need to address emissions from the transportation sector, Executive Order N-79-20 sets a goal to transition all medium- and heavy-duty vehicles, including school buses, to zero-emission by 2045 where feasible. Within the transportation sector, replacing diesel school buses with zero-emission buses has been a priority given the adverse health impacts of diesel particulate matter and children’s increased vulnerability. Public school districts often do not have the funding to replace their aging school bus fleet, so incentives such as the Public School Bus Set-Aside play an important role in helping school districts transition their bus fleets to zero-emission.
Senate Bill 114 (Amendment to Committee on Budget and Fiscal Review, Chapter 48, Statutes of 2023) appropriated $375 million to CARB for Local Educational Agency School Bus Replacement Grants to be administered in FY 2023-24. The legislation also includes certain program requirements, such as the scrappage of internal combustion buses, and provides direction on how applications should be prioritized.
Project Funding/Allocations/History
HVIP Public School Bus Set-Aside
| Fiscal Year | Dollars Allocated (In Millions) |
|---|---|
| 2021-22 | $130 |
| 2022-23 | $135 |
| TOTAL | $265 |
Local Educational Agency School Bus Replacement Grants
| Fiscal Year | Dollars Allocated (In Millions) |
|---|---|
| 2023-24 | $375 |
| 2024-25< | $375* |
| 2025-26 | $375* |
| TOTAL | $1,125* |
*Expected allocation
Funding Breakdown
| Fiscal Year 2021-22 | Dollars Allocated (In Millions) |
|---|---|
| Incentive Funds | $121.5 |
| Voucher Processing Fees | $7.2 |
| CARB Administration | $1.3 |
| TOTAL Allocation | $130 |