New York allocates $200 million for electric school bus rollout
The funding is part of the third tranche from the state’s $4.2 billion Environmental Bond Act and will be distributed through the New York School Bus Incentive Program (NYSBIP).The first round took place about one year ago, when the state made 100 million dollars in funding available and the New York State Energy Research and Development Authority (NYSERDA) released the requirements for manufacturers and dealers to apply to the incentive programme.
The programme provides purchase incentives for electric buses, charging infrastructure vouchers for Level 2 and DC fast chargers, and fleet electrification planning funds. Funding is available on a first-come, first-served basis and can cover up to 100 per cent of the incremental cost of a zero-emission bus compared to diesel or gasoline models.
Eligibility criteria ensure higher funding amounts for high-need and disadvantaged school districts, with incentives for removing internal combustion buses, purchasing wheelchair-accessible models, or procuring vehicles with vehicle-to-grid capability. School districts completing fleet electrification plans also become eligible for increased incentives. Vehicle dealers apply the funding to the purchase price on behalf of school districts, while districts themselves apply directly for charging infrastructure vouchers.
The Bond Act requires that disadvantaged communities receive no less than 35 per cent of total funding benefits, with a goal of 40 per cent. NYSERDA aims to meet this through targeted support, and buses domiciled in priority districts qualify for the highest incentives. New York’s FY25-26 budget also included measures to help school districts roll out electric school buses this year while giving them flexibility to finalise fleet electrification plans.
According to the governor’s office, 88 school districts have applied for funds to purchase 529 buses, including 406 for priority districts, since the programme launched. Over 400 districts are working on fleet electrification plans in coordination with NYSERDA.
“New York State is leaning into our Environmental Bond Act commitment to provide public schools with the funding and resources to make electric school buses more affordable,” Governor Hochul said. “We are leaving no school behind as we reduce pollution from vehicles so every student can benefit from clean air while building healthier, more sustainable communities for New Yorkers across the state.”
“The continued rollout of zero-emission school buses is critical to improving air quality and protecting the health of students and drivers in communities across the State,” New York State Department of Environmental Conservation Commissioner Amanda Lefton said. “Investments through the Bond Act are making the transition to these greener vehicles more affordable for school districts. Under the leadership of Governor Hochul and in coordination with our state agency partners, DEC remains focused on administering Bond Act funding to support this important program and continue momentum to help address climate impacts, reduce harmful emissions, and improve quality of life for New York families.”
“The additional $200 million in funding for zero-emission school buses is a bold investment in our children’s health, our environment, and the future of clean energy in New York,” State Senator Kevin Parker concluded. “By accelerating the transition to electric school buses, we’re not only reducing harmful emissions but also improving air quality and public health in our communities, especially in neighbourhoods that have long suffered from high pollution levels. This is a win for clean energy, for equity, and for every New Yorker.”
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