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Clean Fueled Bus Program


Incentive funds are available to state and local transit agencies, municipalities, and schools for up to 100% of the incremental vehicle cost (i.e., the additional cost of a clean-fueled bus compared to the cost of a comparably sized petroleum-powered vehicle) and for directly associated infrastructure projects. A clean-fueled bus is any motor vehicle with a seating capacity of 15 or more passengers used for the transportation of persons on public highways that is powered by compressed natural gas (CNG) including dual-fuel technology, propane, methanol, hydrogen, biodiesel, or ethanol, or uses electricity as a primary motive force (e.g. hybrid-electric). Dual fuel CNG engines must be factory built and certified or a new diesel engine converted to dual-fuel prior to commit to a fuel mix that results in 75% or greater use of CNG during typical operation of the bus. Buses must be commercially available from one or more bus manufacturers and be assigned to regular or revenue service.

NYSERDA funding of over $10.2 million has helped the New York City Transit Authority purchase 192 CNG buses and 91 diesel hybrid-electric buses like this one. These buses will displace over 10.25 million gallons of petroleum, and reduce emissions of 1,850 tons of NOx, 100 tons of PM-10, and 144,434 tons of CO2 over the vehicles lifetime.

image of hybrid-electric bus

Eligible Infrastructure Projects include construction of infrastructure and installation of equipment to fuel or recharge clean-fuel buses including, but not limited to, battery charging station and natural gas fueling stations and depots. To be considered for funding, the Clean Fuel Infrastructure project must be necessary to introduce or expand a fleet of clean-fueled buses and include only cost items directly associated with making the facility capable of dispensing the clean fuel.

In ranking projects, priority will be given to projects that:

  • Result in greatest emissions reduction per Program dollar invested;
  • Are located in areas where air quality improvements are needed;
  • Provide the greatest economic benefits to the State;
  • Leverage co-funding by the applicant or others;
  • Are from new proposers;
  • Support emerging technologies; and
  • Are consistent with other clean-fuel vehicle activities and priorities.

Funds come from New York State’s 1996 Clean Water/Clean Air Bond Act. $24.5 million has been awarded for 520 buses including CNG, battery electric, and diesel hybrid-electric technology. The program has leveraged more than $175 million in investments in clean fuel technology. This program supports several bus operators to introduce clean fuel buses including the Metropolitan Transportation Authority (New York City Transit and Long Island Bus), Central New York Regional Transportation Authority, and Long Beach School District.

Case Studies

MTA NYC Transit
Long Beach City School District
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New York State Energy Research and Development Authority
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