Funding for electric school buses still possible
A proposal to provide local school districts access to funds for electric school buses stalled in the Legislature, but money may still be available through the state budget.
House Bill 32, which would have allowed school districts to replace traditional diesel school buses with electric or alternative fuel buses using funds from the Public Education Department, passed two House committees in February but has yet to be scheduled for a floor vote.
However, President Pro Tempore Mimi Stewart (D-Albuquerque) carried Senate Bill 48, which would establish a community benefit fund for projects that would help reduce emissions and address the state's climate change goals. Those projects include purchasing electric vehicles and related charging infrastructure for public entities — a category that includes public schools. SB48 passed and awaits Gov. Michelle Lujan Grisham's signature.
As such, funding for electric school buses was added to the state budget in House Bill 2.
According to the March 18 Senate Finance Committee report, $60 million will be allocated to the Public School Facilities Authority for electric vehicle charging infrastructure for local school districts. The report specifies that the funds are contingent on SB48 passing and can be used for upgrading diesel fuel school buses to ESBs between Fiscal Years 2026 and 2028.
Shelley Mann-Lev, executive director for advocacy organization Healthy Climate NM, one of several advocacy groups to back the original bill, told Source NM that the addition to the state budget is 'an excellent step' toward getting more ESBs on the road and upgrading public school bus fleets.
According to the fiscal impact report for HB32, diesel school buses cost an average of $420,000 while diesel school buses cost about $103,000 – electric charging infrastructure costs between $16,000 and $46,000. More than 100 ESBs could be purchased with $60 million at these average prices.
Mann-Lev added that vehicle-to-grid, an agreement companies or agencies enter into with local electric utilities to sell back excess power, is not approved for school districts at this point. Advocates originally pointed to vehicle-to-grid as another option to offset the high cost of electric buses.
The state budget was passed by the Senate Wednesday afternoon and awaits a concurrence vote from the Senate.
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