NYS looks to help with cost of switching to electric school buses

ALBANY — School districts across New York State and Long Island could see some relief in the state budget as legislative leaders discuss ways to help schools that are struggling to make the transition to emission-free buses by a 2035 deadline.

State lawmakers in 2022 passed a law requiring new buses sold in the state to be zero-emission by 2027 and all buses on the road to be zero-emission by 2035 in an effort to reduce greenhouse gas emissions to fight climate change. Zero-emission buses can include battery electric and hydrogen fuel cell buses.

Much has since changed since then, with rising costs from federal tariffs, delays to some of the state’s clean energy projects by the Trump Administration and cuts to federal aid promised under the Biden Administration that would have helped pay for buses and charging stations.

"We have to deal in the reality," Gov. Kathy Hochul, a Democrat, told Newsday. "We’re flexible because we understand the world has changed with this administration."

"We’re talking about how to manage this, yes," Hochul said, when asked if help for districts would be discussed as she and state legislative leaders negotiate the state’s $260 billion budget. The budget is due by April 1, the start of the state’s fiscal year.

Assembly Speaker Carl Heastie (D-Bronx) this week said his conference plans on increasing funding for the transition as part of its one-house budget.

Senate Majority Leader Andrea Stewart-Cousins (D-Yonkers) agreed there will likely be a conversation in budget negotiations on how to help schools transition.

"We’re trying to weigh the problems with not making this transition, the impacts on our children’s health and the environment," Stewart-Cousins told Newsday. "It’s always a delicate balance but we’re hearing them."

The discussion comes after Hochul last year delayed a state mandate requiring new buildings to be "all-electric." She is now reportedly eyeing changes to the state’s climate law, citing the need for affordability.

And all 213 legislative seats and the governor’s seat are up for election in November, increasing political pressure to deliver for constituents. Lawmakers could also opt to do nothing on controversial items, saving them for a nonelection year.

Difficult transition

School leaders and education advocates say funding would help with the cost of buses and charging infrastructure. But for some districts, money won’t fix the problem as they face a slew of different challenges including concerns over battery life on long routes and power grid capacity. 

Increasing funding, is a "Band-Aid," said Greg Berck, assistant director of governmental relations and assistant counsel for the New York State Council of School Superintendents. "You have fundamental infrastructure issues and there’s just a general public policy question of how much money is too much to put toward this operation." 

Education leaders and advocates say lawmakers should push back the 2035 deadline or rethink the mandate.

"We’re not at a point right now where that’s realistic or possible for way too many districts," Brian Fessler, chief advocacy officer for the New York State School Boards Association said. "Districts are hoping something is going to be done because they can’t move forward."

Environmental advocates say the state should stay the course.

"We really need to move forward on this policy to make sure that kids and bus drivers and communities are safe and healthy getting to school," Liz Moran, New York policy advocate for Earthjustice, told Newsday. Exposure to toxic diesel bus fumes can lead to a host of health problems including childhood asthma, she said.

"Last year the legislature and governor agreed to add flexibilities for districts with actual hardships and barriers, so we don’t really need to do anything this year," Moran said.

Waiver, cost

The 2022 law included a waiver allowing districts to continue to purchase diesel buses for another two years. Last year state lawmakers put in another two-year waiver, allowing districts to delay the 2027 deadline by up to four years. To qualify, districts must meet certain requirements including showing hardship and that they’re making progress.

The state is anticipating a good number of districts to apply for the first waiver, with under 200 electric buses on the road, Jeffrey Matteson, senior deputy commissioner for Education Policy at the State Education Department told lawmakers at a budget hearing last month.

There are approximately 45,000 school buses statewide.

There are three main challenges: funding, getting power to bus garage sites, and fear, as schools that fail to comply with the mandate risk losing their state transportation aid, said Timothy Eagen, superintendent of Kings Park school district and president of the Suffolk County School Superintendents Association. For Kings Park, transportation aid is about $1.4 million, he said.

The state originally included $500 million in funding through the environmental bond act to help with the transition and last year allocated another $100 million.

Electric school buses are priced at about $450,000 each compared to approximately $150,000 for gas or diesel buses. Federal grant money was supposed to help districts make up the difference, but the program was cut by the Trump administration.

"If nothing changes, this mandate is going to become one of the greatest unfunded mandates in New York State history," Eagen said, adding that it affects districts and bus companies that contract with schools.

Slower rollout?

Levittown School District Superintendent Todd Winch said his district plans to apply for the waiver and is engaged in an electrification study as part of the process, but has largely been hesitant to make the switch because of the cost.

With subsidies, there’s a cost of about $100,000 per bus, which adds up when replacing 50 to 60 buses in a short time frame, Winch said. To pay for all new buses and infrastructure will mean either cuts to programs or increased taxes, he said.

The district is hoping for a slower rollout, but not because it is against electrification, Winch said. "We’re just against unduly burdening our taxpayers with a project that really should be done within a decade or two, not by 2035."

He questioned the need for a 2027 waiver, saying it doesn’t make sense. "Am I really looking for a waiver to buy gas buses that I can only use until 2035?"

There are a number of potential solutions being discussed, including allowing hybrid or low-emission buses or increasing state aid for transportation costs that aren’t currently covered like storage facility costs, Fessler said.

Sen. Alexis Weik (R-Sayville) told Newsday she thinks the bus mandate is unattainable and should be repealed. "You can’t just throw money at a bad idea," Weik said. "It doesn’t make it better,"

Assemb. Michaelle Solages (D-Elmont), said she'd like to see a short-term postponement.

"The question before us is not whether we transition to clean transportation, it’s when and what timeline," Solages told Newsday. "Doing this right will ensure that the mandate succeeds instead of collapsing under unrealistic expectations."