Additional $200M for Zero-Emission School Buses in NY

Background

Through New York State’s 2022 Environmental Bond Act, $500 million in funds were set aside to support the electrification of school buses in the state. New York has established the following deadlines:

• By 2027, all school buses purchased will be electric
• By 2035, all school buses in the state will be electric

Electric school buses (ESBs) are zero-emission buses that are either battery-powered or hydrogen fuel cell-powered.

To distribute the $500 million in Bond Act funding for ESBs, the New York State Energy Research and Development Authority (NYSERDA) has created the New York School Bus Incentive Program (NYSBIP). Applicants can request funding to purchase ESBs, establish charging infrastructure, and plan for fleet electrification. Funds are available to public schools and third-party bus operators.

The first round of the NYSBIP opened in late 2023. At that time, $100 million of the Bond Act funding was made available. Round 1 has helped New York make progress toward its school bus electrification goals: about half of the school districts in the state are currently developing fleet electrification plans, and over 75 districts submitted applications for the purchase of 350 ESBs.

New Funding

In August 2024, $200 million of additional funding was released through the second round of the NYSBIP. Applicants seeking funding through this program must submit school bus voucher applications or charging voucher applications. These applications are accepted on a rolling basis.

If you are interested in purchasing an ESB for your district, you must select a pre-approved bus on NYSERDA’s Eligible ESB List. Note that vouchers can be stacked with other related incentives, such as federal tax credits.

Bus and charging voucher funding will be increased for applicants that meet certain additional requirements, such as those that scrap old internal combustion engine (ICE) buses and those that are located in “priority” (high-need) districts.

To read about the NYSBIP in full detail, visit NYSERDA’s page on the program here.

At Walden, we have helped our clients secure over $60 million in funding through a wide variety of programs. Contact our sustainability experts at 516-518-3705 to discuss the options available to you through the NYSBIP, as well as other related opportunities.