CA AB2336

Modifies the prioritization process for allocating school bus retrofit and replacement funds authorized under Proposition 1B (2006), which provided $200 million for these purposes.

Beginning January 1, 2019, requires the State Air Resources Board to prioritize funding for the most polluting and oldest school buses operating in federal extreme nonattainment air districts first, followed by small air districts, then medium air districts.

Maintains the requirement that each allocation provide sufficient funding for at least one project under the Lower-Emission School Bus Program.

Requires districts with unspent funds within six months of expenditure deadlines to transfer those funds to alternative qualifying districts with demonstrated demand.