The California Energy Commission will fund buy-down incentives for manufacturers to reduce the purchase price of new propane school buses.

The total initial funding for the Alternative and Renewable Fuels and Vehicle Technology Program is $14.6 million, but school buses are excluded from all but $2 million for propane. Applications are open to bus manufacturers or their dealers to offset the original purchase price of buses to assist public and private fleets in making the switch to alternative fuels.

The money is on a first-come, first-served basis. School buses up to 14,000 GVWR are eligible for $15,000 towards the purchase price of a new propane vehicle while school buses larger than 14,000 pounds GVWR are eligible for $20,000.