Gov. Kathy Hochul announced Tuesday an additional $200 million is now available for zero-emission school buses through the third installment of funding from the $4.2 billion Clean Water, Clean Air, and Green Jobs Environmental Bond Act of 2022.
According to a news release, the funding, distributed through the New York School Bus Incentive Program, supports the purchase of electric buses, charging infrastructure and fleet electrification planning as public schools transition to zero-emission technologies that improve air quality and reduce pollution in communities. The investment helps ensure that students, drivers and the communities where they live across New York benefit from clean, quiet and healthy buses, the release stated.
Since NYSBIP’s launch, 88 school districts have applied for funds to purchase 529 buses, which includes 50 priority school districts accounting for 406 buses and 400 districts are now working with NYSERDA to create Fleet Electrification Plans.
“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,” 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.”
Administered by the New York State Energy Research and Development Authority, NYSBIP provides incentives to eligible school bus fleet operators, including school districts and school bus operators, that purchase zero-emission buses. It also offers charging infrastructure vouchers to help support the installation of Level 2 or DC fast chargers and provides funding to develop fleet electrification plans. This support helps ensure safer, more reliable transportation for students while giving schools the tools they need to make smart, cost-effective upgrades, the release stated.
The funding is available on a first-come, first-served basis with incentive amounts covering up to 100 percent of the incremental cost of a new or repowered electric school bus. This helps offset some or all of the difference in purchase price between zero-emission buses and comparable diesel or gasoline buses. All school bus fleet operators in New York state can also qualify for funding for fleet electrification plans, which provide a customized roadmap for electric bus adoption.
“Today is the latest in a series of support that NYSERDA has offered to help make it easier for fleet operators to plan, navigate incentives for bus purchases and install vehicle charging infrastructure,” said NYSERDA President and CEO Doreen M. Harris. “We are excited to help more adopt zero-emission school buses through this additional Environmental Bond Act funding.”
Program eligibility and rules for charging infrastructure funding are available online through the NYSBIP Implementation Manual, the release stated.. School bus fleet operators do not apply directly for school bus funding. Vehicle dealers apply the funding to the price of buses on their behalf after fleet operators have issued purchase orders. Fleet operators apply directly to NYSERDA for charging vouchers, which support adding charging infrastructure to their depots.
Larger funding amounts are available for high-need school districts and school districts with significant portions of their population living in disadvantaged communities, as determined by the New York State Climate Justice Working Group criteria, the release stated. While these districts are defined as priority districts through this program, all school districts can earn increased incentives by removing a gas or diesel bus from operation, purchasing wheelchair accessible buses or purchasing buses with vehicle to grid capability. All school districts that complete fleet electrification plans also become eligible for higher funding amounts.
The FY25-26 state budget continued to build momentum for school districts to put electric school buses on the road this year while providing districts with additional flexibility and time to complete their electrification plans and get hands-on experience with this new technology, the release stated.
The new independent range estimate requirement for bus manufacturers will also give school districts greater confidence that the buses will meet specific mileage and route conditions.
The Bond Act requires that disadvantaged communities receive no less than 35%, with a goal of 40%, of the benefit of total Bond Act funds. In line with this goal, NYSERDA aims to ensure that at least 40 percent of the New York School Bus Incentive Program benefits disadvantaged communities. Buses domiciled in priority districts are eligible for higher incentive amounts in support of new zero-emission buses and charging infrastructure.
New York state provides many resources for school bus fleet operators to transition their fleets to zero-emission buses, including an Electric School Bus Guidebook, a collection of practical user guides that highlight the benefits of electric school buses to make each part of transitioning a bus fleet easy to understand, the release stated. This is a resource that can inform discussions with schools, New York state agencies, legislators, communities, manufacturers, bus dealers and utilities to raise awareness on the Bond Act funding available to school districts and to help more communities understand the health and climate benefits that electric buses provide. Fleet operators seeking assistance should contact NYSERDA at schoolbus@nyserda.ny.gov.