In early August, the New York State Energy Research and Development Authority (NYSERDA) released proposed eligibility guidelines for the Public School Bus Electrification Program being designed under the $4.2 billion Clean Water, Clean Air, and Green Jobs Environmental Bond Act of 2022. The proposed guidelines earmark at least $500 million for zero-emission school buses and infrastructure to assist municipalities applying for funding for projects that support the Act. The goal of the Act is to reduce greenhouse gas emissions 85% by 2050. New York State’s requirement is that all school buses sold in New York State be zero emission by 2027 and all school buses on the road be zero emission by 2035.
Per NYSERDA:
- The Public School Bus Electrification Program will be a New York State-wide point-of-sale voucher program that provides discounts to eligible school bus fleet operators that purchase or lease zero-emission battery electric (BEV) or hydrogen fuel cell electric (FCEV) school buses and associated charging infrastructure. The program currently contemplates that vouchers will be disbursed directly to dealers and manufacturers to offset some or all of the incremental cost of eligible buses (the difference in purchase price between zero-emission school buses and comparable diesel or gas-powered buses).
- Charging infrastructure incentives may be disbursed directly to fleet operators. Funding may also be made available for eligible fleets to develop fleet electrification plans to inform electric school bus purchases. School buses must meet all current federal and New York State safety guidelines. 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 will aim to ensure at least 40% of the Public School Bus Electrification Program benefits disadvantaged communities. Buses domiciled in or serving disadvantaged communities and/or high-need school districts will receive consideration for higher incentive amounts.
Beginning in the 2024-25 school year, school districts will be required to annually submit to SED a progress report on the implementation of zero-emission school buses including:
- Sufficiency of the district’s electrical infrastructure to support anticipated electrical needs.
- The availability and installation of charging or fueling stations and other components and capital infrastructure required to support the transition to all full implementation of zero-emission school buses.
- Whether workforce development reports have been created and implemented.
- Number and proportion of zero-emission school buses utilized by the district and/or contractors in the current year.
- Number and proportion of zero-emission school buses purchased or leased by the district and/or contractor in the current year and the total number anticipated for the next two years.
Shari Diamond, CIA
Partner
Shari has been with Cerini & Associates, LLP since 2008 where she works primarily with the firm’s school district clients providing internal audit and claims audit services. She has over twenty years’ experience performing internal audits, risk assessments, and compliance reviews, as well as recommending processes to strengthen the internal controls environment while increasing efficiencies. Her prior experience at PWC and Northrop Grumman included performing Information Technology audits.