How States Have Advanced ESB Policies
States have played a pivotal role in advancing school bus electrification, complementing federal programs and in some cases predating national efforts.
State policies have mostly focused on providing funding for electric school buses and their charging stations, allocating over $2.5 billion to date. States have also set transition goals for their fleets, created technical assistance programs , directed utilities to support vehicle-to-grid (V2G) projects with electric school buses, and enabled school transportation regulations to welcome electric models.
Funding Programs
States have provided nearly one-third of total U.S. electric school bus funding.
Most state funding programs have been created since the EPA Clean School Bus Program was established in 2021. Since then, at least 11 states have created programs explicitly meant to support electric school buses.
Another two states passed legislation establishing programs to support electric school buses, but without securing funding: Virginia and Nevada. Massachusetts’ program is the only one not created by statute.
Apart from these dedicated funding programs, some states have awarded significant portions of their Volkswagen Settlement funds to helping districts buy electric school buses, such as: Florida ($57 million in 2023), Virginia ($50.5 million as of 2021), North Carolina ($30 million in 2022), Michigan ($14 million in 2019), Illinois ($13 million in 2025), Connecticut ($12.7 million in 2021), and Minnesota ($4.7 million as of 2023).
The federal Diesel Emissions Reduction Act (DERA) program also allocates funding to states, which states have used for electric school bus investments.
Transition Goals
Technical Assistance Programs
Five states to date have developed electric school bus technical assistance programs through a state agency: California, Massachusetts, New Jersey, New York, and Washington. Connecticut and Nevada rely on their state green banks to provide technical support. In other states, technical assistance for school districts and private fleets is provided through Clean Cities and Communities coalitions, non-governmental organizations, and/or private vendors.
Utility Programs
At least four state legislatures have directed electric utility companies to create electric school bus incentive programs, most as part of their beneficial electrification or transportation electrification plans: Illinois, Maryland, Nevada, and Virginia. Maine ordered a utility to conduct a feasibility study, which was published in 2024 and identified key barriers to implementing electric school bus vehicle-to-grid projects in the state.
Of course, many utilities have pursued regulatory approval, rather than state legislative direction, to establish their EV incentives. WRI has a comprehensive list of utility programs for which electric school buses qualify.
Enabling Policies
States have passed a variety of policies enabling electric school bus adoption, such as creating an electric school bus working group (Maine), studying electric school buses (Massachusetts), extending the length of school bus contract terms (Idaho, Illinois, Mississippi), allowing the leasing of electric school buses (New Jersey), and expanding pre-approved vendors lists to include electric school bus companies (Arizona).
Model States
Some states have led with vision and ambition. California has invested over $1.39 billion in electric school buses since the early 2010s; the state also has a statewide transition goal and has directed utilities to support vehicle electrification. Connecticut, Maryland, New York and Washington have also all passed state legislation, established statewide transition goals, and created funding programs for electric school buses.
Key State Policies
| STATE | BILL | YEAR | SUMMARY | FUNDING | IMPACT |
|---|---|---|---|---|---|
| AZ | SB 1246 | 2022 | Enabling. Allows school districts to contract with electric school bus companies, including electrification-as-a-service providers, if they are pre-approved by the AZ School Bus Advisory Council. | ||
| CA | AB 579 | 2023 | Transition Goal. Requires school districts to purchase or lease only zero-emission buses starting in 2035. 5-year extensions may apply if zero-emission school buses are not feasible due to terrains or routes. | ||
| CA | SB 114 | 2023 | Funding, Enabling. Appropriates $375 million for a California Air Resources Board (CARB) program for clean school buses and $125 million for a zero-emission school bus charging infrastructure program through the California Energy Commission (CEC). Also directs the state Dept. of General Services to establish statewide contracts with school bus manufacturers to ensure high-road manufacturing standards. | $500 million | Created CARB’s Zero Emission School Bus Program and the CEC’s Zero Emission School Bus Infrastructure Program (ZESBI). |
| CO | SB22-193 | 2022 | Funding. Establishes a grants program for electric school buses. | $65 million | Created the Colorado Electric School Bus Grant Program. |
| CT | SB 4, | 2022 | Funding, Transition Goal. Establishes grants and technical assistance program for electric school buses, providing matching funds for federal awards, funded through state bonds.
Requires school districts to purchase only zero-emission school buses by 2040. Environmental justice communities must transition by 2030. | $20 million | Created the Clean School Bus Supplemental Funds Program in partnership with the Connecticut Green Bank. |
| DE | HB 10 | 2023 | Transition Goal. Requires the state’s Dept. of Education to purchase an increasing share of electric school buses annually, starting with 5% in 2025 and with 30% of all purchases electric by FY2030. | ||
| ID | SB 1319 | 2022 | Enabling. Lengthens contract terms for electric school buses to 10 years. | ||
| IL | SB 2408 | 2021 | Utility Program. Directs electric utilities to include electric school bus incentives in beneficial electrification plans. | Led to Ameren Illinois and ComEd offering electric school bus incentives. | |
| IL | HB 2235 | 2023 | Enabling. Lengthens contract terms for electric school buses to 15 years. | ||
| MA | H.5060 | 2022 | Enabling. Directs the various state agencies to prepare a report analyzing zero-emission buses and provide recommendations for creating an incentive program to replace diesel school buses. | The state published its report in 2024 with recommendations for an inventive program. | |
| ME | LD 1579 | 2022 | Transition Goal, Enabling. Requires 75% of school buses to be zero-emission buses by 2035. Convenes an electric school bus working group and lengthens contract terms for electric school buses to 15 years. | The state published a report on its working group and activities in 2023. | |
| ME | HB 519 | 2023 | Utility Program. Directs an electric utility to assess the feasibility of a vehicle-to-grid (V2G) pilot project for electric school buses. | Efficiency Maine published its report in 2024 outlining barriers to V2G deployment. | |
| MD | HB 1255 | 2019 | Funding. Establishes grants and technical assistance program for electric school buses. | $3 million (allocated in 2023) | Created the Maryland Electric School Bus Fund. |
| MD | SB 528 | 2022 | Transition Goal. Requires school boards to only purchase zero-emission school buses starting in 2025. Exceptions apply for school districts that demonstrate performance or funding constraints. | ||
| MD | HB 0696 | 2022 | Utility Program. Directs the Public Service Commission to develop and administer an electric school bus pilot program with at least 4 investor-owned utilities. | $200 million ($50 million per utility) | Baltimore Gas & Electric and the Potomac Edison Company have submitted their proposals so far. |
| MI | SB 0173 | 2023 | Funding. Establishes grants program for clean school buses. | $125 million | Created the Michigan Clean Bus Energy Grant Program. |
| MI | SB 63 | 2023 | Funding. Allows sinking funds to be used for electric school buses. | ||
| MN | HB 2310 | 2023 | Funding. Establishes grants program for electric school buses. | $13 million | Created the Minnesota Electric School Bus Program. |
| MS | SB 2887 | 2022 | Enabling. Allows school districts to purchase, own, and operate electric school buses. | ||
| NV | SB 299 | 2019 | Utility Program. Allows electric utility charging infrastructure program funds to be used for electric school buses. | Led to NV Energy offering electric school bus incentives. | |
| NV | SB 448 | 2021 | Utility Program. Directs electric utility to establish a vehicle-to-grid (V2G) pilot program and fund electric school bus charging stations as part of its transportation electrification plans. | Led to NV Energy implementing a V2G pilot program with two school districts. | |
| NV | AB 184 | 2023 | Funding. Establishes an incentive program for clean trucks and buses using federal funding. School districts receive a higher incentive for purchasing electric school buses. | No funding | The state is still awaiting federal guidance on using FTA funds. |
| NJ | AB 1677 | 2024 | Enabling. Allows school districts to lease electric school buses. | ||
| NJ | 2022 | Funding. Establishes grants program for electric school buses. | $45 million | Created the New Jersey Electric School Bus Grant Program. | |
| NM | HB-2 | 2025 | Funding. Allows public school funds to be used for charging infrastructure and electric school buses. | Up to $60 million | Funding is available through the New Mexico Community Benefit Fund. |
| NY | A58 | 2022 | Funding. Establishes grants program for electric school buses. | $500 million | Created the NYSERDA’s NY School Bus Incentive Program. |
| NY | FY2023 Budget | 2022 | Transition Goal. Requires school districts to purchase or lease only zero-emission buses starting July 1, 2027, with all electric fleets by 2035. Exemptions apply for school districts who receive waivers or have cost or performance constraints. | An additional two-year extension was authorized in 2025. | |
| OR | Executive Order 17-21 | 2017 | Technical Assistance. Directs the state Dept. of Energy to help school districts considering electric school buses. | Led to the creation of the state’s Guide to School Bus Electrification. | |
| VA | HB 2346 | 2025 | Utility Program. Directs electric utility to create an electric school bus program, allowing it to use the bus batteries for vehicle-to-grid pilots. | ||
| VA | HB 2118 | 2021 | Funding. Establishes grants program for electric school buses. | No funding | |
| WA | HB 1644 | 2022 | Funding. Allows funding from the state’s transportation fund to be used for electric school bus charging infrastructure, feasibility plans, and electric repowers. | ||
| WA | HB 1125 | 2023 | Funding. Allocates funding for an electric school bus grants program. | $120 million | Created the Washington Zero Emission School Bus Grant Program. |
| WA | HB 1368 | 2024 | Transition Goal, Enabling. Requires school districts to buy electric school buses when the Total Cost of Ownership for zero-emission buses cost equal to or less than diesel buses. Lengthens contract terms for electric school buses to 7 years. | ||
| WV | HB 4571 | 2022 | Funding. Increases the state transportation reimbursement school districts receive for alternative fueled vehicles, including electric school buses, with an extra allotment for buses manufactured in the state. (GreenPower opened a manufacturing facility in the state that year.) |
