Additional $200 Million Environmental Bond Act Funding Now Available for Zero-Emission School Buses

New York School Bus Incentive Program Makes Clean Buses and Charging Infrastructure More Affordable for Public Schools

August 13, 2024

Governor Kathy Hochul today announced that an additional $200 million is now available to school districts and bus operators for zero-emission school buses through the second installment of funding from the historic $4.2 billion Clean Water, Clean Air, and Green Jobs Environmental Bond Act (Bond Act). The funding, distributed through the New York School Bus Incentive Program (NYSBIP), provides support for the purchase of electric buses, charging infrastructure or fleet electrification planning as public schools transition to zero-emission technologies that improve air quality and reduce pollution in communities.

“Paving the way for zero-emission school buses not only cleans our air, it protects the health and wellbeing of our students,” Governor Hochul said. “With increased funding for school to transition to clean transportation options, we are reducing harmful emissions and pollution, helping to ensure that both students and residents are breathing clean, fresh air and enjoying healthier environments to live, work and do business.”

Administered by the New York State Energy Research and Development Authority (NYSERDA), NYSBIP provides incentives to eligible school districts and bus fleet operators purchasing electric buses. It also offers charging vouchers to school districts or bus operators and provides funding for these groups to develop fleet electrification plans. This 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 zero-emission school bus, depending on the type of vehicle, helping make the cost of an electric bus comparable to that of a gas or diesel bus. Charging vouchers can offset the cost of installing Level 2 or DCFC fast chargers. All school districts in New York State also qualify for funding for fleet electrification plans, which provide each with a customized roadmap for electric bus adoption.

New York State Energy Research and Development Authority President and CEO Doreen M. Harris said, “NYSERDA is proud to help New York State public schools transition to clean, electric student transportation fleets with a robust funding available for buses, charging infrastructure, and electrification plans. We look forward to supporting more schools with this additional Bond Act funding so more students across the state can enjoy healthy, quiet and comfortable rides to and from school each and every day.”

Larger funding amounts are available for high-need school districts and disadvantaged communities , as determined by the New York State Climate Justice Working Group criteria. While these districts are defined as priority districts through this program, all school districts can earn increased incentives through the program with additional eligible funding amounts available for 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 funding announced today builds on the successful first round of Bond Act school bus funding issued in November 2023. Since NYSBIP’s launch, more than 75 school districts have applied for funds to purchase 350 buses, including 51 districts located in disadvantaged communities, and almost half of the state’s school districts are now working with NYSERDA to create Fleet Electrification Plans. To date, 250 districts have started developing these plans, and more than 100 additional districts are in the process of applying for fleet planning in coordination with their local BOCES districts.

Since the program launch, NYSERDA has worked 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. NYSERDA has engaged every school district to offer training and information, hosts a recurring webinar series, and is in regular contact with districts across the state. School bus fleets seeking assistance should contact NYSERDA at [email protected].

New York State Education Commissioner Betty A. Rosa said, “This funding is a significant and welcome installment in helping school districts meet the costs of transitioning to zero-emission school buses and infrastructure. It’s an important step forward in ensuring that our schools can comply with this mandate while preserving vital classroom resources. While additional funding is still needed to support school districts making this transition, we are optimistic about the positive impact this investment will have and remain committed to working with our government partners to provide ongoing support, ensuring that districts can achieve both their educational and environmental objectives effectively.”

WRI’s Electric School Bus Initiative Director Sue Gander said, “New York stands as a pioneering example of bringing clean, tailpipe-emission-free electric school buses to the students and communities who need them most. We commend Governor Hochul for her continued leadership on school bus electrification to improve student health and air quality, and we’re encouraged to see districts across the state utilizing the New York School Bus Incentive Program to invest in accessible, electric school buses and charging infrastructure that offer a safe, clean ride for kids.”

New York League of Conservation Voters President Julie Tighe said, “This $200 million infusion from the Environmental Bond Act is another major mile marker on the road to all electric school buses. It’s time for New York to retire the dirty diesel buses that warm our planet and contribute substantially to respiratory illnesses in our school children, and replace them with clean and healthy zero-emission rides. We are excited to see the ESB transition kicking into high gear and we applaud Governor Hochul for her steadfast commitment to climate action and public health.”

NYSERDA has also developed wide-ranging resources for school districts and school bus fleets as they plan for, and purchase, electric school buses. These include the Electric School Bus Roadmap, which presents an overview of the key challenges, costs, funding mechanisms, and policy options involved in school bus electrification, and the Electric School Bus Guidebook, a series of practical user guides meant to assist school district staff and bus operators on specific topics such as:

• Benefits of School Bus Electrification
• Electric School Bus Purchasing
• Electric School Bus Charger Purchasing
• Financial Incentives for Electric School Buses and Chargers
• Routing and Range Requirements for Electric School Buses
• Electric School Bus Storage and Charger Site Planning
• ESB Operations and Maintenance
• Electric School Bus Charging Equipment Operations and Management
• Electric School Bus and Charging Safety
• Workforce Development Strategies and Training Needs

Learn more on NYSERDA’s website.

Today’s announcement complements New York State’s nearly $3 billion investment in clean transportation and the State’s clean car and truck regulations that require 100 percent zero-emission passenger car and light-duty truck sales by 2035. Active medium- and heavy-duty truck initiatives include zero-emission truck purchase vouchers through the New York Truck Voucher Program (NYTVIP) and the New York City Clean Trucks Program, the "EV Make Ready" initiative to help expand electric vehicle use, fleet assessment services, and the $24 million Electric Truck and Bus Prize Challenge under the $85 million New York Clean Transportation Prizes .

New York State's Nation-Leading Climate Plan

New York State's climate agenda calls for an orderly and just transition that creates family-sustaining jobs, continues to foster a green economy across all sectors and ensures that at least 35 percent, with a goal of 40 percent, of the benefits of clean energy investments are directed to disadvantaged communities. Guided by some of the nation’s most aggressive climate and clean energy initiatives, New York is advancing a suite of efforts – including the New York Cap-and-Invest program (NYCI) and other complementary policies – to reduce greenhouse gas emissions 40 percent by 2030 and 85 percent by 2050 from 1990 levels. New York is also on a path to achieving a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and economy-wide carbon neutrality by mid-century. A cornerstone of this transition is New York's unprecedented clean energy investments, including more than $28 billion in 61 large-scale renewable and transmission projects across the State, $6.8 billion to reduce building emissions, $3.3 billion to scale up solar, nearly $3 billion for clean transportation initiatives and over $2 billion in NY Green Bank commitments. These and other investments are supporting more than 170,000 jobs in New York’s clean energy sector as of 2022 and over 3,000 percent growth in the distributed solar sector since 2011. To reduce greenhouse gas emissions and improve air quality, New York also adopted zero-emission vehicle regulations, including requiring all new passenger cars and light-duty trucks sold in the State be zero emission by 2035. Partnerships are continuing to advance New York’s climate action with more than 400 registered and more than 130 certified Climate Smart Communities, nearly 500 Clean Energy Communities, and the State’s largest community air monitoring initiative in 10 disadvantaged communities across the State to help target air pollution and combat climate change.