Electric Bus Program

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?

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

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, 2025 and July 31, 2026 must be submitted by September 30, 2026. 

Applications for purchases between August 1, 2026 and September 30, 2026 can be submitted either:  

1. By September 30, 2026 for the program design and under the terms and conditions relevant at the time of application submission. 

2. Or between October 1, 2026 and September 30, 2027 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.  

Program design is expected to change on October 1, 2026. 3CE will provide more information on the website in late September 2026. 

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 January 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.

Rebates effective October 1, 2026

Walkthrough

Resources

Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project

Point-of-sale discounts to power California communities and drive commercial technology transformation.

California HVIP

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.

EPA Clean School Bus Program

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.

EngergIIZE Project

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.

Funding Finder Tool

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.

Alternative Fuels Data Center

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.

PG&E EV Fleet Program

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.

SCE Charge Ready Transport Program

Fleet Electrification & Infrastructure Guidebook

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.

2023 Clean Air Grants Program

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.

SLO County Clean Air Incentives

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:

1. APPLICANT agrees to follow and be contractually bound by all terms and conditions herein.
2. 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.
3. 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”).
4. 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.
5. 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.
6. 3CE reserves the right to discontinue the Program at any time for any or no reason and remove all available, non-reserved funds.
7. 3CE reserves the right to change the program’s design, eligibility, rebates, requirements and/or due dates as may be necessary.
8. 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.
9. 3CE reserves the right to reject any or all applications received in relation to the Program.
10. 3CE reserves the right to reject any or all applications received in relation to the Program for any reason.
11. 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.
12. 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.
13. 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.
14. 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.
15. 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.
16. 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.
17. 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.
18. These terms may be modified at any time in accordance with any legal or regulatory directive.
19. APPLICANT certifies that all information provided as part of this Application, including any attachments, are true and correct.
20. 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”).
21. 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.