This second funding round of the ZESBI scheme combines incentives for vehicles and charging equipment in a single application process. Funding will be allocated to eligible local educational agencies on a first-come, first-served basis. The programme is jointly funded by the California Air Resources Board (CARB) and the California Energy Commission (CEC), with Catalyst Mobility – formerly CALSTART – administering the grants.
A pre-application period began on 3 November, which allows applicants to create accounts and prepare their documentation. Formal applications will be accepted from 17 November at 10:00 Pacific Time. Applicants must request at least one charger for every electric school bus included in their application.
Successful recipients will be eligible for up to an additional $40,000 per approved bus. The supplementary funding is intended to help offset higher procurement costs following the elimination of the US federal Commercial Clean Vehicle Credit (45W), as well as price increases resulting from federal tariffs.
Up to 10 per cent of each grant award can also be allocated to wider school transportation programme costs. Eligible expenses include workforce training, technical assistance, repairs to buses and chargers, workshop equipment and improvements to transport yards.
Rachel Chard, senior director of bus programs at Catalyst Mobility, said: “This new round of ZESBI funding, alongside the extra $40,000 funding opportunity, reinforces our partnership’s lasting commitment to delivering clean transportation technologies to communities disproportionately impacted by poor air quality.”
California first launched ZESBI in 2024, with a $500 million funding round supporting the replacement of around 1,000 school buses. In April 2025, the state announced that 133 educational agencies had been selected to receive grants under that initial round. The awards included up to $375,000 to replace an existing bus, alongside funding for charging infrastructure.
