Relates to lease terms for zero-emission school buses

• Democratic3

◆ The sponsor's argument

Why Shelley Mayer says this is needed

New York State law requires all school districts to transition to an all zero-emission electric school bus fleet by 2035. The shift to zero emis- sion buses will provide significant benefits to our students, school communities and state as a whole. Replacing diesel and gas buses with electric buses reduces exposure of children to pollutants which can increase risk of asthma and otherwise harm children's health and devel- opment. And the states'law represents an important piece of our commit- ment to transitioning to a clean energy economy and drastically reducing our carbon emissions. While the benefits are myriad, school districts are navigating a whole host of new costs and logistical challenges as they plan for and begin to purchase or lease electric buses. Chapter 563 of the laws of 2024 sought to address one of these challenges by shortening the amortization period for electric school buses. Under state law, districts receive transportation aid from the state as partial reimbursement for certain transportation expenses, including the purchase or lease of new buses, which is paid out over the course of the amortization period. This legislation makes a further change to the amortization period, giving districts that wish to enter into a longer lease period more flexibility. The bill allows districts to enter into leases up to 12 years, and allows them to receive transportation aid over a schedule aligned with the lease period they agree to. A district that enters into an 8-year lease would'still'receive transportation aid over a period of 8 years; a district that enters into a 12 year lease, would receive aid over a period of 12 years. Enabling school districts to choose any lease term between eight and 12 years will give districts flexibility to choose the terms that work best for them locally as they prepare for the full adoption of zero emission buses. This flexibility will also make operating in New York financially viable for the companies whose business model relies on a longer lease period. Without these changes, it is likely that some market partic- ipants may not pursue agreements with school districts in the state, thereby putting further financial and operational stress on districts as they look to come into compliance ahead of the new state requirements.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.