More than £6 million pounds could be invested in electric public transport for Hampshire, subject to approval from the Government.
Portsmouth City Council, Hampshire County Council and First Hampshire Dorset and Berkshire have applied to the Department for Transport for the money.
The cash, which will come from the Zero Emission Buses Regional Areas Fund, will pay for 34 brand new electric buses.
First Buses said it was a "great example" of collaboration between the company and local councils.
If successful, the vehicles will be deployed on the 1 route between Portsmouth and Southsea, 3 between Porstmouth and Fareham and the 9/9A in Fareham and Gosport.
It's thought the new buses could save on more than 1,700 tonnes of carbon dioxide emissions a year.
Councillor Rob Humby, deputy leader of Hampshire County Council and executive lead member for economy, transport and environment, said: "I am really pleased that our bid has moved to the next stage and demonstrates the value of our strong working partnership. What will be important now, is to ensure we have a watertight business case developed for submission by the end of January.
"This will stand us in good stead for the work we will be undertaking as part of 'Bus Back Better' - the government's National Bus Strategy; and in supporting a green economy locally to fulfill our county council's commitment to be carbon neutral by 2050."