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School Bus Grant Program

Page updated August 24, 2023

The San Luis Obispo County Air Pollution Control District (APCD) School Bus Replacement Program is currently closed. 

Funding Amounts

For zero-emission electric buses, APCD will fund 50% of the eligible portion of the purchase price up to $200,000 per bus. Co-funding will be required and may be available through incentive programs from Central Coast Community Energy (open only to their customers), through the California Hybrid and Zero-emission Truck and Bus Voucher Incentive Project (HVIP), or through other state or federal programs. Please note that not all funding sources allow “stacking” or combining with other funding sources; eligibility will be confirmed before committing funds.

For near zero-emission replacement buses (meeting the optional low NOx standard of 0.02 g/bhp-hr) APCD will fund up to $200,000 per bus.

Funding for standard diesel replacement buses is not available.

Up to 100% funding for electric bus charging infrastructure is also available under a separate application – see our EV Infrastructure web page.


  • All projects are replacement only and require scrapping a diesel (or gasoline) powered bus. 
  • Old bus must be in operational condition and in regular use, with current CHP safety inspection, and inspection records for the previous 2 years.
  • Upon delivery of the new bus, the old bus will be destroyed at an approved salvage yard.
  • Bus must belong to a fleet of public school buses in San Luis Obispo County.
  • Engine model year of old bus must be at least 20 years old (2003 or older).
  • The new replacement school bus must be equipped with a zero-emission propulsion system (battery electric or fuel cell) with a minimum range of 35 miles or a combustion engine meeting the optional low NOx emission standard of 0.02 g/bhp-hr.
  • Funding for near zero-emission replacement buses (meeting the optional low NOx standard of 0.02 g/bhp-hr) is capped at $200,000 per bus.
  • Some APCD funding sources require that projects meet a cost-effectiveness threshold which may reduce the eligible award amount.
  • Additional eligibility requirements apply - for more information, see the Request for Proposals which has links to program guidelines. 

How to Apply

APCD employs a two-part application process for school bus projects.  Part A of the application is found at the link below and must be accompanied by the REG 292 card(s) for the old bus.  A dealer quotation is not required for this portion of the application.

If your project is chosen for funding, we will send you part B of the application to complete and return to APCD with additional documentation, including a dealer quote. The bus must not be purchased until the application is accepted and a grant agreement is executed with APCD.

School Bus Replacement Application Part A

List of Approved Dealers and Salvage Yards

Applications received will be used to create an eligibility list for current and future APCD school bus funding. Future funding sources may include the AB 617 Community Air Protection Program, which prioritizes funding for zero-emission technologies in low-income areas of our county. Your application today for the School Bus Replacement Program will automatically enroll your project for consideration in the AB 617 program.

For more information on the APCD School Bus Grant Program, see the Request for Proposals, or contact APCD staff at 805-781-5912 with any questions regarding this program.