The Mobile Source Air Pollution Reduction Review
Committee (MSRC) is offering a new funding
opportunity for public transit agencies within the
South Coast Air Quality Management District looking
to accelerate their transition to zero-emission fleets. The
MSRC’s Zero-Emission Transit Bus Incentive Program
provides up to $25 million in incentives to help offset the
cost of new battery-electric and hydrogen fuel cell buses
and charging infrastructure.
Public transit agencies play a key role in advancing California’s clean air goals and are required to transition to zero-emission bus fleets under the California Air Resources Board Innovative Clean Transit regulation. Beginning January 1, 2026, large agencies must ensure at least 50 percent of new bus purchases are zero-emission, while smaller agencies must meet a 25 percent requirement. The MSRC’s incentive program helps agencies meet and exceed these targets by accelerating zero-emission bus deployment and reducing financial barriers.
Eligible applicants include public transit agencies, both large and small, subject to the Innovative Clean Transit regulation. Qualifying vehicles include Class 4-8 heavy duty zero-emission battery-electric or hydrogen fuel cell transit buses. Charging units for battery-electric buses are also eligible.
The application period opened on May 1 and closes June 30. Incentives will be awarded on a first-come, first-served basis. Additional requirements and restrictions are outlined in the Program Announcement.
The Program Announcement is available on the MSRC’s Zero Emission Transit Bus Incentive Program webpage.
For any questions, please contact:
• Cynthia Ravenstein, MSRC Contracts Administrator,
(909) 396-3269 or Cynthia@CleanTransporationFunding.org
• Ray Gorski, MSRC Technical Advisor,
(909) 396-2479 or Ray@CleanTransportationFunding.org