New Jersey Senate Bill S218

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

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.

Impact

The bill requires school districts seeking financial assistance to conduct energy assessments comparing operating costs, maintenance expenses, and environmental impacts of electric buses versus diesel buses. The results of these assessments will play a key role in the funding approval process through the NJIB. Additionally, special consideration is given to school districts located in overburdened communities, emphasizing the bill's intent to promote equity in environmental benefits and transportation solutions.

Summary

Senate Bill 218 directs the New Jersey Infrastructure Bank (NJIB) to establish an Electric School Bus Financing Program aimed at replacing diesel-powered school buses with electric alternatives in school districts. The bill allocates $20 million annually from societal benefits charge revenues specifically for this purpose. This initiative is designed to promote the adoption of electric buses, which are seen as more environmentally friendly compared to traditional diesel buses, thereby aiming to reduce emissions and contribute to better air quality in New Jersey.

Contention

One notable point of concern that may arise is the long-term financial liability for school districts if they commit to financing these electric buses without sufficient operational savings or incentives to offset the costs. Furthermore, while the bill is lauded for its environmental goals, there could be debates regarding the adequacy of the funding allocated through the societal benefits charge and whether it will be sufficient to meet the demand for the loans required for transitioning to electric school buses.