Electric Bus Program
Electric Bus Program
| Reminder: Eligibility is changing October 1, 2026. Please see the eligibility tab for details. |
Overview
The Electric Bus Program provides 3CE customers with incentives for the purchase or lease of all-electric buses for schools, public transit agencies, and agricultural worker transport businesses. The Electric Bus Program is intended to reduce GHG emissions from buses, as well as eliminate harmful pollutants emitted by traditional diesel buses in close proximity to people.
Benefits
- Electric buses are more cost-effective to run and maintain than diesel
- Buses powered by cleaner energy emit fewer harmful pollutants and greenhouse gases each year
- Clean air is linked to proper cognitive functioning, better physical and academic performance, and increased school attendance. People riding an electric bus are happier, healthier and safer per the Bureau of Transportation Statistics
Who is Eligible?
- Individual public schools or public-school districts
- Businesses that provide Ag transport services
- Transit authorities
Eligible applicants must have at least one site located within the 3CE service area. The account associated with the location of the bus must be in “good standing.”
Eligible Vehicle Types
- School bus types A, B, C, and D
- Shuttle buses
- Transit buses
- Motor coaches
- Other vehicle types, at 3CE’s discretion
Project Eligibility
Each fiscal year (which runs Oct. 1 – Sept. 30), applicants are eligible for up to five e-buses per customer.
Applications for purchases made between August 1, 2026 and September 30, 2027 must be submitted by September 30, 2027. Applications will be processed for the program design and under the terms and conditions that are relevant at the time of application submission.
Applications are processed in the order they are received and are subject to available funding. 3CE reserves the right to change program design, including eligibility and rebates, at any time. Please read the program Terms and Conditions for full details.
Requirements for all projects
- The location where the bus will be charged must be actively enrolled in 3CE service at the time the bus is ready to be delivered
- The selected bus must be fully electric (hybrid or hydrogen buses will not be accepted)
- Vehicle or charging equipment must be network/Wi-Fi enabled, such that the bus may participate in future 3CE Programs offering participation in charge, discharge, and related activities
- Bus make and model must be identified prior to submittal of the application
- Application must be received prior to the purchase/order or lease of the electric bus
- Applicant must retain ownership or possession and operate the electric bus as described above for a minimum of 60 consecutive months immediately after purchase or lease
Rebates
Rebates effective October 1, 2026
Customers may receive a rebate for up to five E-buses per fiscal year. Customers may apply for a combination of small and large E-buses, up to five E-buses.
Priority Community Enhanced Incentive available to eligible applicants qualifying as a California Climate Investments Priority designated or 1/2 mile neighboring community.
Walkthrough
Applicant identifies desired bus and identifies necessary matching funds to complete bus purchase or lease
Applicant completes and submits online application through the 3CE website
3CE approves application and verifies applicant and project eligibility
3CE provides successful applicants with a notice of qualification, stating that 3CE is prepared to fund the stated rebate amount, should funding remain available in the given fiscal year. This notice of qualification does not serve as a reservation of rebate funds. 3CE will also fund electric buses as a post-purchase rebate, whereby applicants submit a rebate application after purchase and delivery of a bus has been completed
Upon payment and delivery of the bus, applicant provides 3CE with proof of purchase. 3CE verifies documentation, then delivers rebate amount to customer via check
Resources
Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project
Point-of-sale discounts to power California communities and drive commercial technology transformation.
EPA Clean School Bus Program
With funding from the Bipartisan Infrastructure Law, EPA’s new Clean School Bus Program provides $5 billion from 2022 to 2026 to replace existing school buses with zero-emission and low-emission models.
EngergIIZE Project
The EnergIIZE (Energy Infrastructure Incentives for Zero-Emission) Commercial Vehicles Project is working to improve community health by reducing air pollution from harmful diesel emissions, while helping commercial fleets and industry partners meet California’s climate goals. Funded by the California Energy Commission (CEC) and developed in close coordination with equity partners, project funding will provide the infrastructure needed to support the transition of old, polluting medium- and heavy-duty (MD/HD) equipment to zero-emission battery electric and hydrogen fuel cell vehicles.
Funding Finder Tool
CALSTART’s Funding Finder Tool is designed to help stakeholders search and filter for Medium-and-Heavy-Duty Alternative Fuel Vehicle and infrastructure programs in the state of California. Start by filtering results by ZIP Code then filter based on the other criteria you desire.
Alternative Fuels Data Center
The U.S. Department of Energy’s Alternative Fuels Data Center provides a database of incentives, laws, and regulations related to alternative fuels and advanced vehicles for the state of California, including grants, rebates, tax exemptions, and vehicle replacement programs.
PG&E EV Fleet Program
PG&E’s EV Fleet program helps fleets easily and cost-effectively install charging infrastructure so they can save money, eliminate tailpipe emissions and simplify maintenance.
SCE Charge Ready Transport Program
SCE’s Charge Ready Transport Program gives your business the opportunity to install the infrastructure to support a fleet of medium- and heavy-duty electric vehicles at low or no cost to you.
Santa Barbara County 2023 Clean Air Grants Program
The Santa Barbara County Air Pollution Control District is providing grant funds to benefit public health by cost-effectively replacing old, high-polluting equipment with newer, cleaner equipment earlier than required by regulation or through normal attrition.
SLO County Clean Air Incentives
The San Luis Obispo County Air Pollution Control District has operated its Grant Program since 1997. In that time, it has infused over $33.2 million dollars into the local economy to help businesses modernize their equipment and comply early with State emission regulations. These dollars have funded the reduction of over 3,284 tons of smog forming pollutants.
Ready to apply? Access the application below.
Effective Date: 10/1/2026
Definitions:
APPLICANT – references the 3CE commercial business, and/or organization residing in the 3CE service territory, who is applying for the E-Bus program.
VENDOR – references the individual and/or company facilitating the purchase of the APPLICANT’s E-Bus(es) and invoicing the APPLICANT
If the APPLICANT’s VENDOR is submitting the application on the APPLICANT’s behalf and/or serving as the rebate recipient, the VENDOR certifies APPLICANT understands and has approved all of the terms and conditions.
By submitting this application, APPLICANT agrees to the following terms and conditions:
- APPLICANT agrees to follow and be contractually bound by all terms and conditions herein.
- APPLICANT must be a 3CE customer with at least one service charging location in the 3CE service territory. Vehicles purchased must be registered to an address within 3CE’s service territory.
- The E-Bus charging station(s) where the incentivized E-bus(es) is/are charged must be enrolled in 3CE service at the time of the E-Bus(es) delivery, provided the associated utility account is within the custody and control of the APPLICANT (hereinafter “utility account”).
- APPLICANT agrees to release, indemnify, defend, and hold harmless 3CE and its agents, employees, or representatives from all claims, demands, and liabilities, including bodily injury claims arising out of or in connection with the APPLICANT’s participation in the Program.
- Submittal of this Application does not commit 3CE to any financial obligation to any APPLICANT. 3CE will only commit to award funds to APPLICANT upon written confirmation that all program eligibility conditions are met and all required documents and information pertaining to this Application have been provided to 3CE. The Program is on a first-come, first served basis until funding is depleted.
- 3CE reserves the right to discontinue the Program at any time for any or no reason and remove all available, non-reserved funds.
- 3CE reserves the right to change the program’s design, eligibility, rebates, requirements and/or due dates as may be necessary.
- 3CE reserves the right to consider factors other than those specified within this Application and to request additional information from APPLICANT that are pertinent to the Program.
- 3CE reserves the right to reject any or all applications received in relation to the Program.
- 3CE reserves the right to reject any or all applications received in relation to the Program for any reason.
- 3CE does not issue an IRS 1099 for the rebate and 3CE cannot offer tax advice of any kind. It is APPLICANT’S responsibility to contact a tax professional regarding the taxability of the provided rebate.
- APPLICANT agrees to maintain the utility account and remain enrolled as a 3CE customer for a minimum of 24 consecutive months following the customer’s receipt of the incentive. Applicant understands the rebate may be revoked if Applicant unenrolls the utility account in 3CE service before 24 consecutive months.
- APPLICANT confirms that the incentivized vehicle is for commercial use only. APPLICANT shall not utilize the rebate program on a repetitive basis for monetary gain.
- If applicable, APPLICANT shall register and insure any new vehicle incentivized by 3CE as required by the California State law for a minimum of 24 consecutive months immediately after the vehicle purchase or lease date.
- APPLICANT understands that by participating in the program, 3CE may publicly share aggregate data about the program which will include APPLICANT’s project, rebate, and/or installation contractor. 3CE will not release the APPLICANT’s personal and/or identifiable information without APPLICANT’s written consent.
- By participating in this program, APPLICANT agrees and understands that 3CE may publicly share APPLICANT’s E-bus photo(s). 3CE will remove any personally identifiable information before sharing photos, unless otherwise provided permission by APPLICANT. 3CE will not release the APPLICANT’s personal and/or identifiable information without APPLICANT’s written consent.
- Any dispute arising out of or relating to these Terms shall be governed by and construed under the laws of the State of California, without reference to its conflicts of law provisions. Any dispute, or claim arising out of relating to this Agreement, or breach thereof shall be venued in Monterey County.
- These terms may be modified at any time in accordance with any legal or regulatory directive.
- APPLICANT certifies that all information provided as part of this Application, including any attachments, are true and correct.
- APPLICANT agrees to disclose to 3CE any other third-party grant, award, or rebate funding designated for the E-Bus(es) purchase. Eligible costs for incentive consideration are posted on 3CE’s website and may be subject to change. APPLICANT understands that the final rebate amount issued can be up to but not exceeding 50% of eligible project costs, minus any current or prospective financial incentives or rebates from additional funding sources (“Net Eligible Cost”).
- APPLICANT authorizes the release of information related to the contents and status of the APPLICANT’s rebate application with the VENDOR listed in the application. Data may include name of applicant, rebate amount, and application status. If APPLICANT wishes to revoke authorization, APPLICANT must contact 3CE with written instructions to revoke access.