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

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New York City's school bus incentive program makes clean buses and charging infrastructure more affordable for public schools

Helps improve air quality and reduce transportation pollution in local communities and across the state

Governor Kathy Hochul today announced that an additional $200 million is now available to school districts and bus companies for zero-emission school buses through the second tranche 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.

“By paving the way for zero-emission school buses, we are not only cleaning up our air, we are also protecting the health and well-being of our students,” Governor Hochul said“With increased funding for schools to transition to clean transportation options, we are reducing harmful emissions and pollution, helping ensure that both students and residents breathe clean, fresh air and enjoy a healthier environment to live, work and do business.”

NYSBIP is administered by the New York State Energy Research and Development Authority (NYSERDA) and offers incentives to eligible school districts and bus fleet operators that purchase electric buses. It also offers charging vouchers to school districts or bus companies 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 re-powered zero-emission school bus, depending on the vehicle type, making 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 are also eligible for funding for fleet electrification plans, each of which provides a customized roadmap for electric bus adoption.

Doreen M. Harris, president and CEO of the New York State Energy Research and Development Authority, said: “NYSERDA is proud to help New York State’s public schools transition to clean, electric fleets for student transportation with robust funding 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 every day.”

Larger financing amounts are available for high-need school districts And disadvantaged communitiesas 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 retiring a gas or diesel bus, purchasing wheelchair accessible buses, or purchasing buses with vehicle-to-grid capability. All school districts that complete fleet electrification plans are also eligible for increased funding amounts.

The funding announced today builds on the successful first round of Bond Act school bus funding issued in November 2023. Since the launch of NYSBIP, more than 75 school districts have applied for funds to purchase 350 buses, including 51 districts in underserved communities, and nearly half of the state’s school districts are now working with NYSERDA to develop Fleet Electrification Plans. To date, 250 districts have begun 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’s launch, NYSERDA has worked with schools, New York State agencies, legislators, communities, manufacturers, bus dealers, and utilities to raise awareness about 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 each school district to provide 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].

Sue Gander, director of WRI's Electric School Bus Initiative, said: “New York is a pioneering example of bringing clean, zero-emission electric school buses to the students and communities that need them most. We applaud 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 using the New York School Bus Incentive Program to invest in accessible, electric school buses and charging infrastructure that provide a safe, clean ride for kids.”

Julie Tighe, president of the New York League of Conservation Voters, said: “This $200 million injection from the Environmental Bond Act is another milestone on the path to all-electric school buses. It’s time for New York to retire the dirty diesel buses that are heating up our planet and contributing significantly to respiratory illnesses in our schoolchildren, and replace them with clean, healthy, zero-emission rides. We’re excited to see the ESB transition shift into high gear, and we applaud Governor Hochul for her steadfast commitment to climate action and public health.”

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

NYSERDA has also developed extensive resources for school districts and school bus fleets to help them plan and purchase electric school buses. These include the Electric School Bus Route Mapwhich provides an overview of the key challenges, costs, financing mechanisms and policy options involved in school bus electrification, and the Electric School Bus Guidea series of practical user guides designed to assist school staff and bus drivers with specific topics such as:

• Benefits of School Bus Electrification
• Purchase of electric school buses
• Purchase of electric school bus charger

Financial incentives for electric schools

Routing and range requirements for

Electric School Bus Storage and Charger

• Location planning
• ESB Operations and Maintenance

Electric School Bus Charging Equipment

• Operations and management
• Electric school bus and charging safety

Strategies for workforce development and

More information about NYSERDA 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, which require sales of 100 percent zero-emission passenger cars and light trucks by 2035. Active initiatives for medium- and heavy-duty trucks include purchase vouchers for zero-emission trucks through the New York Truck Voucher Program (NYTVIP) and the New York City Clean Trucks Program, the “EV Make Ready” initiative to expand the use of electric vehicles, fleet assessment services and the $24 million under $85 million Electric Truck and Bus Prize Challenge New York Clean Transportation Awards.

New York State's Leading Climate Plan

New York State’s climate agenda calls for an orderly and just transition that creates jobs for families, continues to advance a green economy across all sectors, and ensures that at least 35 percent, with a goal of 40 percent, of the benefits from clean energy investments go to underserved communities. Led by some of the nation’s most aggressive climate and clean energy initiatives, New York is pursuing a series of efforts—including the New York Cap-and-Invest (NYCI) program and other complementary policies—to reduce greenhouse gas emissions by 40 percent by 2030 and 85 percent by 2050 compared to 1990 levels. New York is also on track to achieve a net-zero emissions 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 utility-scale renewable energy and transmission projects across the state, $6.8 billion to reduce emissions from buildings, $3.3 billion to scale solar, nearly $3 billion for clean transportation initiatives, and more than $2 billion in NY Green Bank commitments. These and other investments will support more than 170,000 jobs in New York’s clean energy sector by 2022 and more than 3,000 percent growth in the distributed solar sector since 2011. To reduce greenhouse gas emissions and improve air quality, New York has also passed zero-emission vehicle regulations, including a requirement that all new passenger cars and light trucks sold in the state be zero-emission by 2035. Partnerships continue to advance New York’s climate action with more than 400 registered and over 130 certified Climate Smart Communities, nearly 500 Clean Energy Communities, and the state’s largest community air monitoring initiative in 10 underserved communities across the state to address air pollution and combat climate change.

Thanks to Governor of New York