NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9238a
SPONSOR: Woerner TITLE OF BILL:
An act to amend the education law and the local finance law, in relation
to the period of probable usefulness of zero-emission school buses
PURPOSE:
To change the amortization period of electric school buses from twelve
years to eight years.
SUMMARY OF PROVISIONS:
Section I amends subdivision of the section 1604 of the Education Law to
change the lease period for a zero-emission school bus in common school
districts from 12 years to 8 years.
Section 2 amends Education Law 51709 (25) (i) to change the lease period
for a zero-emission school bus in a union free school district from 12
years to 8 years
Section 3 amends Education Law S3602 (7) (e) to direct the commissioner
of education to establish an assumed amortization for a period of eight
years instead of twelve years for zero-emission school buses.
Section 4 amends Local Finance Law 511 (29-a) to change the amortization
period for the purchase of an EV school bus from twelve years to eight
years.
Section 5: establishes the effective date.
JUSTIFICATION:
Starting in 2027, school districts in New York will be required to
purchase electric school buses to replace standard diesel buses. Because
electric buses are significantly more expensive than diesel buses, the
legislature gave districts a longer period to pay for them. A tradi-
tional bus is paid for over five years, with an expected period of
usefulness of ten to twelve years. Electric buses currently must be paid
for over a period of twelve years. Unfortunately, because electric buses
cannot be undercoated without voiding their warranties, the expected
life of an electric bus is only eight to ten years, with warranties
expiring after eight years. With a twelve-year amortization period,
districts will frequently be paying for buses that are no longer in
service. This bill shortens the amortization period to reflect the life
expectancy of electric school buses more accurately.
PRIOR LEGISLATIVE HISTORY:
This is a new bill.
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect on the first of July next succeeding the date
on which it shall have become a law.
