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California Energy Project Launches Second Round of Transit Set-Aside Lane

Up to $15 million available in zero-emission charging and hydrogen infrastructure incentives.

A bus parked at an electric vehicle charging station.

The EnergIIZE Project looks to promote alternative fuel vehicles by providing incentives for constructing the necessary infrastructure to implement EV and Hydrogen fleets.

Photo: CALSTART

2 min to read


The California Energy Commission’s (CEC) Energy Infrastructure Incentives for Zero-Emission Commercial Vehicles (EnergIIZE) Project announced year two of the Transit Set-Aside Funding Lane. Applications are open now through Q1 2025.

Administered by CALSTART and partner Tetra Tech, the Transit Set Aside Lane will award up to $15 million in incentives for deploying zero-emission vehicle charging and hydrogen refueling infrastructure.

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The Importance of Green Public Transit

Most Americans support using public transit, however just 3% of commuters use it to travel to work. Those who do use public transit are predominately people who lack reliable personal transportation and have lower incomes. These riders are among those at risk of inhaling harmful air pollutants from tailpipes at bus stops.

Grant Information

Through the Transit Set Aside, EnergIIZE covers up to $2.8 million in incentive funding for eligible equipment.

Hydrogen equipment covered by EnergIIZE includes compressors, liquid and gaseous pumps, storage, piping and pipelines, dispensers with hose and nozzles, and chillers. 

Electric vehicle (EV) equipment covered by EnergIIZE includes Level 2 electric vehicle supply equipment (EVSE), direct current fast-chargers (DCFC), inductive charging systems, vehicle to grid (V2G) bidirectional EVSE, cable management systems, and pantograph charging systems. Switchgears, electrical panel upgrades, wiring and conduit, and meters are also possible.

Transit vehicle incentives through the California Air Resources Board (CARB) Clean Truck and Bus Voucher Program are paired with the CEC’s EnergIIZE Transit infrastructure incentives.

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To qualify for Transit Set-Aside Funds, fleets must be:

  • Included in the CARB Innovative Clean Transit program’s list of compliant transit agencies.

  • A California city or county government, transportation district/transit district, public agency district, or public agency.

  • A California Native American Tribe, California Tribal Organization, or Non-Governmental Organization Serving Tribal entities.

Applications will be accepted through the Incentive Processing Center application portal.

Another Opportunity

This Set-Aside Lane will operate in tandem with EnergIIZE’s Drayage Set-Aside Lane, which offers up to $50 million in infrastructure incentives to hydrogen and EV drayage charging/fueling infrastructure and vehicle operators, vehicle dealers, Charging-as-a-Service vendors, and others.

“We hope that California transit fleets continue to find value in this program and help spread the word about EnergIIZE funding opportunities,” said Tesi Bravo, deputy director, Commercial Clean Transportation Infrastructure, CALSTART.

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EnergIIZE Set-Aside funds are specifically designed for Transit, Drayage, and Public School Bus vocations. The project also offers additional funding for Hydrogen, EV Fast Track, EV Jump Start, and EV Public Charging Station. More information about EnergIIZE can be found on their website.

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