Directs NJ Infrastructure Bank to establish financing program for electric school buses; allocates $20 million annually in societal benefits charge revenues to NJ Infrastructure Bank for purposes of program.
The bill mandates that the NJIB create the Electric School Bus Financing Program within one year of its enactment, offering financial assistance in the form of loans and grants to school districts. Each applicant must perform an energy assessment comparing operational costs between electric and diesel buses, as well as potential environmental benefits. The findings from these assessments are to be prioritized by the Board of Public Utilities (BPU), particularly for districts located in overburdened communities, to ensure equitable access to funding.
Assembly Bill A1474 directs the New Jersey Infrastructure Bank (NJIB) to establish a financing program for the purchase of electric school buses. This initiative aims to encourage school districts to transition from diesel-powered buses to electric alternatives, which are intended to contribute to environmental sustainability and cost savings over time. The program will be funded through a $20 million annual allocation from societal benefits charge revenues, aiming to enhance the use of renewable energy in public transportation.
To ensure accountability, the BPU, alongside the NJIB, is tasked with submitting annual reports to the Governor and Legislature on the program's effectiveness. These reports will detail the school districts that received funding, the electric buses purchased, and the environmental benefits achieved. This ongoing evaluation will address the program's impact and effectiveness, potentially guiding future legislative action.
While the bill has the support of many environmental advocates, concerns have been raised regarding the feasibility and adequacy of funding. Opponents argue that the transition to electric buses might incur hidden costs that are not fully addressed by the proposed financial assistance. Additionally, the prioritization of specific districts may create tensions among those not receiving immediate funding, raising questions about equity and access to these incentives.