Through the third installment of funding from the historic $4.2 billion Clean Water, Clean Air, and Green Jobs Environmental Bond Act of 2022, New York Governor Kathy Hochul announced that an additional $200 million is now available for zero-emission school buses.

The funding, distributed through the New York School Bus Incentive Program (NYSBIP), 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.

“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.” 

Administered by the New York State Energy Research and Development Authority (NYSERDA), NYSBIP incentivizes eligible school bus fleet operators, including school districts and school bus operators, to purchase zero-emission buses. The incentive program also offers charging infrastructure vouchers to support the installation of Level 2 or DC fast chargers and provides funding to develop fleet electrification plans.

According to a release, this support helps ensure safer, more reliable student transportation while giving schools the tools to make smart, cost-effective upgrades. 

“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 said.

“By accelerating the transition to electric school buses, we’re reducing harmful emissions and improving air quality and public health in our communities, especially in neighborhoods that have long suffered from high pollution levels. This is a win for clean energy, for equity, and for every New Yorker,” Parker added.

High-Need Districts Prioritized in Incentive Program

The funding is available on a first-come, first-served basis with incentive amounts covering up to 100% of the incremental cost of a new or repowered electric school bus.

The process aims to 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,” New York State Energy Research and Development Authority President and CEO Doreen M. Harris said. "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.

It is recommended that 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 districts with significant portions of their population living in disadvantaged communities, as determined by the New York State Climate Justice Working Group criteria.

“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,” said New York State Department of Environmental Conservation Commissioner Amanda Lefton.

Equity and Health Drive NY’s Electric School Bus Strategy

According to a release, modernizing public school transportation with zero-emission buses is a priority for Governor Hochul to ensure the health of New York students.

“Cleaner air means healthier kids, and reducing pollution around schools helps protect them from asthma and other respiratory problems,” New York State Health Commissioner Dr. James McDonald said. 

The FY25-26 New York 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 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. 

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. 

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% of the New York School Bus Incentive Program benefits disadvantaged communities.

Buses in priority districts are eligible for higher incentive amounts in support of new zero-emission buses and charging infrastructure.