An additional $200 million is now available for zero-emission school buses in New York State, Governor Kathy Hochul announced. The funding comes from the third installment of the $4.2 billion Clean Water, Clean Air, and Green Jobs Environmental Bond Act of 2022. It will be distributed through the New York School Bus Incentive Program (NYSBIP), supporting public schools in purchasing electric buses, installing charging infrastructure, and planning fleet electrification.
Governor Hochul stated, “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. 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.”
The program is administered by the New York State Energy Research and Development Authority (NYSERDA). NYSBIP provides incentives for eligible school bus fleet operators—including districts and contractors—to buy zero-emission buses and install Level 2 or DC fast chargers. Funding is also available for developing fleet electrification plans.
According to NYSERDA President and CEO Doreen M. Harris, “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. We are excited to help more adopt zero-emission school buses through this additional Environmental Bond Act funding.”
Funding will be awarded on a first-come, first-served basis. Incentives can cover up to 100 percent of the incremental cost difference between new or repowered electric buses and their diesel or gasoline counterparts. All fleet operators statewide may apply for support with electrification plans.
Larger incentive amounts are reserved for high-need districts and those serving disadvantaged communities as determined by criteria set by the New York State Climate Justice Working Group. Additional incentives are available if a district removes a gas or diesel bus from service, purchases wheelchair-accessible vehicles, or buys models with vehicle-to-grid capability.
New York State Department of Environmental Conservation Commissioner Amanda Lefton said, “The continued rollout of zero-emission school buses is critical to improving air quality and protecting the health of students and drivers in communities across the State. Investments through the Bond Act are making the transition to these greener vehicles more affordable for school districts. 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.”
Rory M. Christian, CEO of the Department of Public Service added: “Kudos to Governor Hochul and her team for encouraging further adoption and deployment of zero-emission school buses. This program will help continue our move toward a cleaner environment, which benefits all of us.”
Dr. James McDonald, New York State Health Commissioner stated: “I thank Governor Hochul for her continued investment in the health of our children and commitment to building healthier communities across the state. Cleaner air means healthier kids, and reducing pollution around schools helps protect them from asthma and other respiratory problems.”
Modernizing student transportation with zero-emission vehicles remains a priority under Governor Hochul’s administration; recent budgets have continued efforts while allowing districts flexibility during implementation.
Since NYSBIP began accepting applications, 88 districts have applied for funds covering 529 buses—including 406 in priority districts—and about 400 districts are working on electrification plans with NYSERDA.
The Bond Act requires that at least 35 percent—and aims for 40 percent—of total funds benefit disadvantaged communities; NYSERDA aligns its program goals accordingly.
Resources such as an Electric School Bus Guidebook are provided by New York State to assist fleet operators through each stage of transitioning their fleets.
State Senator Kevin Parker commented: “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… This is a win for clean energy, for equity, and for every New Yorker.”
Senator Shelley B. Mayer added: “I am pleased that an additional $200 million is now available to school districts… this funding… will further our efforts to reduce carbon emissions while alleviating financial burdens for New York schools.”
Senator Jeremy Cooney said: “Today’s announcement is an important step in the right direction…”
Assemblymember William Magnarelli noted: “The Governor’s investment… shows… continued commitment to climate leadership…”
Assemblymember Michael R. Benedetto stated: “This $200 million will help many school districts as they work to make the transition…”
Assemblymember Didi Barrett highlighted concerns about upfront costs but welcomed financial support made possible by this round of funding.
Association of School Business Officials Executive Director Brian Cechnicki remarked on how investments like these are vital as districts work toward meeting state mandates.
Tommy Smith from the School Bus Contractors Association expressed gratitude over state financing support amid technological advances expected in battery technology.
Sarah Smiley from Mothers Out Front called it good news that should encourage more districts’ participation.
NYSERDA has served as an objective resource on energy policy issues in New York over five decades; current investments total nearly $3 billion toward transportation electrification efforts statewide via programs such as EV Make Ready, EVolve NY, Charge Ready NY 2.0, DriveClean Rebate program (https://www.nyserda.ny.gov/All-Programs/Drive-Clean-Rebate), Truck Voucher Incentive Program (https://truck-vip.ny.gov/), and Direct Current Fast Charger initiatives (https://www.nyserda.ny.gov/All-Programs/Direct-Current-Fast-Charger).
New York’s broader climate agenda seeks an equitable transition away from fossil fuels—across sectors including energy production/buildings/transportation—with minimum thresholds set so disadvantaged communities receive significant benefits.



