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Second Round Of Mitigation Trust Funding Program Opens
Zero Emission

This week, the VW Mitigation Trust launched the second round of funds to replace older, high-polluting transit, school, and shuttle buses with new battery-electric or fuel-cell buses. This funding will help continue the early adoption of new technologies in heavy-duty applications that reduce NOX, diesel particulate matter, and other harmful emissions affecting children, the elderly, and other priority populations.

California first launched this program in 2019, which was set to provide funding to bus owners in two installments of $65 million each. The second installment provides up to $400,000 for a new zero-emission bus. Funding is available statewide through an online application portal and is open to both public and private entities. During the project’s 10-year period, approximately 425 Class 4 through 8 buses will be replaced with zero-emission buses. The San Joaquin Valley Air Pollution Control District will administer the funding statewide with the California Air Resources Board (CARB) providing program and fiscal oversight.

A complete listing of program requirements for Zero-Emission Transit, School, and Shuttle Buses can be found at or by calling program staff (toll-free) at 1-833-BUS-MONEY.

The Zero-Emission Transit, School, and Shuttle Bus program is part of the VW Environmental Mitigation Trust, a nationwide program that provides $423 million for California to fully mitigate the excess nitrogen oxides (NOx) emissions caused by VW’s use of illegal emissions testing defeat devices in VW diesel vehicles. California’s funding will support advanced technology vehicle and equipment deployments and accelerate the zero-emission transformation of the heavy-duty fleet. More than 50 percent of the total project funds are expected to benefit disadvantaged or low-income communities.

The remaining VW Mitigation Trust project categories will support the statewide replacement of on-road freight trucks, forklifts, port cargo handling equipment, commercial marine vessels, and freight switcher locomotives, as well as the installation of light-duty zero-emission vehicle infrastructure. The following list details the project categories and the agencies assigned to administer the funds on behalf of CARB:

• Combustion Freight & Marine Projects, administered statewide by South Coast Air Quality Management District (South Coast AQMD)

Low NOx Class 7-8 freight trucks (including waste haulers, dump trucks, and concrete mixers) or engine repowers;

Tier 4 freight switcher locomotives or engine repowers;

Tier 4 or hybrid ferry, tugboat, and towboat repowers.


• Zero-Emission Class 8 Freight & Port Drayage Trucks, administered statewide by South Coast AQMD.


• Zero-Emission Freight & Marine Projects, administered statewide by Bay Area Air Quality Management District (BAAQMD)

Heavy-lift forklifts and port cargo handling equipment;

Airport ground support equipment;

Oceangoing vessel shore power;

Ferry, tugboat, and towboat zero-emission repowers.


• Light-Duty Zero-Emission Vehicle Infrastructure, administered statewide by BAAQMD.


For more information on the VW Environmental Mitigation Trust or the remaining project categories, visit