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Red Hook board hears EV bus update as state mandate and rising costs squeeze funding options
Summary
Transportation staff told the board the state—s zero-emission vehicle mandate remains in place, the district has six electric buses in delivery, NAERTA grant eligibility is exhausted, and recommended buying hybrids and smaller vans to preserve routes and aid eligibility amid higher EV bus prices.
District transportation staff updated the board on the district's vehicle fleet, the state's zero-emission mandate, and near-term procurement options as funding sources tightened.
"By 2027 schools are prohibited from buying any buses unless they're zero-emission vehicles," a district transportation presenter told the board, summarizing the state mandate and the district's current fleet mix: 44 vehicles total, including 29 school buses and about 15 SUVs, vans and sedans. The district expects full delivery of six EV buses by early March.
Staff walked the board through costs and aid estimates. They said the base price for recent EV buses ranged from about $458,000 to $485,000. Earlier NAERTA grant awards provided credits (about $220,000 per bus in prior awards), but staff said the district has exhausted its eligible share of that grant funding (NAERTA limits coverage to a portion of fleet and Red Hook reached its limit). The district's current state-aid estimate for the recent bus purchases is about 41.9 percent, down from last year's 51.9 percent estimate, leaving an estimated local cost per bus of roughly $60,000 after aid for the last approved purchases.
The presenter contrasted those figures with average fuel-bus prices cited at about $160,000 and said the substantial price difference and the exhaustion of grant eligibility mean the district must consider options carefully. "We are no longer eligible as of right now for any kind of grant funding," the presenter said.
Given route distances, access needs and the mandate's timing, staff recommended a mix of purchases for the next replacement cycle: three hybrid four-wheel-drive SUVs for out-of-district special-needs runs, two 16-passenger single-rear-wheel vans that can use the Taconic State Parkway and reduce toll costs, and a maintenance truck with a plow and sander to replace an aging vehicle. The presenter said the district aims to preserve its replacement cycle to avoid losing a year of aid, which factors into revenue planning.
Board members asked whether the state might defer or change the mandate; staff said the state's messaging so far has been that the mandate will remain in place but that proposed state funding may change and eligibility for additional funds remains unclear. Staff also reported that the two EV buses operating for about a year performed well in recent cold weather, with drivers reporting quiet operation and adequate cabin heat.
Next steps include decisions on what to place on a May proposition to keep replacement cycles and preserve future aid; staff warned that absent new funding, large-bus EV procurement will be expensive. The board will receive further budget and proposition guidance before May.
